Nasscom to lower FY17 growth guidance; revision by mid-Nov

Software association Nasscom will revise downwards its export revenue growth guidance of 10-12 percent for 2016-17 amid global macroeconomic uncertainties and impact of Britain's exit from the European Union.

"A revision is clearly on the cards, and it will be downwards... after all the second quarter results are over, we will complete our analysis by mid-November," Nasscom President R Chandrashekhar told PTI.

He, however, did not comment on the quantum of revision that is likely to be announced in coming weeks.

According to industry watchers, the growth rate could be lowered by 1-2 per cent points.

At the beginning of the year, Nasscom had projected a 10-12 per cent growth for Indian software services segment for 2016-17.

This was lower than the 12.3 per cent export revenue growth (in constant currency) in 2015-16.

Last month, Wipro posted a drop in its second-quarter net profit and warned that revenues in the October-December quarter could be impacted by a "mixed demand environment".

Wipro's third quarter guidance of 0-2 per cent sequential growth reflected sentiment similar to that of larger rivals Tata Consultancy Services and Infosys.

TCS and Infosys posted muted growth numbers for the second quarter as well and said they were witnessing softness in the banking and financial services sector and client spending.

Infosys, in fact, slashed its annual revenue guidance for the second time this year to 8-9 percent.