Nasscom likely to lower FY17 export revenue growth guidance

IT industry body Nasscom today said it is "fairly clear" that it will have to revise downwards its export revenue growth guidance of 10-12 per cent for 2016-17 in view of muted second quarter results by major companies in the sector.
"I had mentioned earlier that Nasscom would revisitthe guidance post the Q2 results, and that we are fully awareof number of short-term factors which have significantlyimpacted the industry," NASSCOM President R Chandrashekharsaid.
Speaking to reporters on the sidelines of the Nasscom Product Conclave 2016 here, he said, "Now many of the Q2results have come, but not all them. Over the next two weekswe expect to have all the results with us and to complete ourprocess, and then we will share what is our revised guidance.

"It is fairly clear that we will have to revise our guidance and revise it downwards, but what exactly is the revised guidance is some thing we will be able to share two weeks from now," he added.
Two of the country's largest outsourcing companies, TCS andInfosys have posted muted numbers for the second quarter andsaid they were witnessing softness in the banking and financial services sector and client spending.
Infosys slashed its revenue guidance for the second time this year to 8-9 per cent.

In July, the company had saidit expected revenues to grow 10.5-12 per cent in constant currency terms, lower than the previously estimated 11.5-13.5per cent growth for the full year 2016-17.

The country's third largest software services firmWipro has estimated its IT revenues to be in the range of USD1,916 million to USD 1,955 million for the quarter endingDecember 31.
This would translate into a growth of 0-2 percent from the IT revenues of USD 1,916 million posted in the July- September quarter.
However, HCL Technologies has exuded confidence in meeting its annual outlook of 12-14 per cent growth on constant currency basis.