The weakening euro and sterling currencies are likely to hit revenue and margins at Tata Consultancy Services Ltd, India’s top software exporter, its chief executive said on Friday.
A global economy on the mend, recent deal wins and stable fees have brightened the outlook for export-driven Indian IT firms such as Tata Consultancy and rival Infosys Technologies, after the recession hit the sector.
But debt crisis in eurozone and a sliding euro are worries for India’s $60 billion outsourcing sector that counts Europe as their second-biggest market after the United States.
“Both the euro and sterling are significantly weakening and the rupee is appreciating and that will definitely have an impact on our revenue line,” said Tata Consultancy Services CEO N. Chandrasekaran.
“This will affect operating margins also. It’s a headwind which we will have to overcome,” he said.
Tata Consultancy, which provides services such as consulting, systems integration and back-office outsourcing, posted a 47-percent rise in March quarter net profit, beating street estimates.
Source:http://www.reuters.com/article/idUSSGE64R0AV20100528
