Infosys Q3 upsets, economic worries hit outlook: Experts

Infosys Technologies' weaker than expected results sparked concerns over growth rates of India's showpiece outsourcing sector as the company flagged a sluggish global economic recovery and currency volatility.

"The challenges to the sector are primarily rupee volatility, which doesn't seem to be going down in a hurry," said Arun Kejriwal, strategist at research firm KRIS. "My concern increases because oil prices are still rising rapidly, putting pressure on economy and rupee."
Its quarterly profit rose 14% to Rs 1,780 crore (USD 396.4 million). A Reuters poll had estimated a profit of Rs 1,820 crore for Infosys. "The numbers have met my expectations, but the street could be a bit disappointed. The revenue performance was disappointing," said Shradha Agarwal, of B&K Securities. Shares in India's No 2 software exporter fell more than 4% to their lowest in over three weeks after its sales growth forecast for the year to March also failed to meet market estimates, a rare miss for a company known for its conservative outlook.