IT Earnings Preview

IT earnings preview
Given the robust demand environment, the front-line information technology (IT) services companies are expected to maintain the growth momentum in Q2FY2007 also. We expect the volumes to grow in the range of 6.5-10% sequentially for the quarter. The depreciation of the rupee would further aid the overall growth in the revenues (based on the average exchange rate during the quarter). However, the impact of the exchange rate fluctuation is likely to be lower in Q2. Especially in terms of the translation gains (that means lower other income), as the end of the period exchange rate was more or less stable as compared to Q1.

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