NASSCOM defends IT growth forecast; JPM cuts Infy EPS

Infosys raised a storm on Friday by declaring it cannot meet NASSCOM's growth projections, following which the stock crashed near 10% on Friday. NASSCOM had said the sector's revenue is likely to grow between 11% and 14% for fiscal 2013, whereas Infosys pegged its own revenue growth at 8-10%, way below the industry target. The company had cited poor perfomance by the BFSI sector, which it said was suffering from global headwinds and volatility, as reasons for toning down its growth forecast.

Speaking to CNBC-TV18, Som Mittal, president, NASSCOM said 11-14% growth projected for the sector is quite achievable. Asked if BFSI  problems are indeed going to affect the sector going forward, Mittal said there are signs of improvement in US "and if words are to be believed, business is better than the mood." BFSI is likley to continue to grow in FY13 and hence 11-14% growth projection is sound, he said.

Meanwhile, JPMorgan tells CNBC-TV18 that they have cut the IT exporter's FY13 earnings estimate by 5%. "Infosys guidance is much below expectations, and the consistent disappointment by the company calls for some derating," said executive director Viju George.

Besides a lower revenue forecast, Infosys also estimated EPS at Rs 160, which led JPMorgan to cut the company's PE multiple to 15x. "We have also cut EPS target to Rs 150," George added. 

Read on for the full interview..