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IT cos may report strong numbers in Q2
Driven by a robust growth in business volumes, major information technology services firms are seen reporting strong numbers for the second quarter ended September 2006.
But companies such as Wipro, Satyam and HCL Technologies , which had effected a wage hike during the September quarter may see some impact on their margins.
Further, a slightly weaker rupee during the quarter would also help boost growth of these firms.
On a quarter average basis, the rupee has depreciated 2 per cent quarter on quarter against the dollar, 3.5 per cent against the euro and 4.7 per cent against the pound.
On an end-of period basis, the rupee has been flat against the dollar, down 1 per cent against pound and up 1.2 per cent against the euro.
The pricing environment, analysts said, would largely remain stable with vendors seeing selective increases from both new and existing customers.
However, analysts expect modest earnings guidance from the companies for the December quarter considering the fact that it has fewer working days, which could impact the billings.
Moreover, management comments on the possible impact of the slowdown in the US would be keenly watched, they said.
