Buoyed by the results and outlook for technology companies, fund managers are optimistic on the sector and feel the good run could last till the next quarter. They are, however, cautious as the US markets are still very volatile.
Infosys Technologies declared its results yesterday for the second quarter ended September 30. MphasiS BFL and Mastek had declared their results earlier. The next big company in line is Wipro whose September quarter results is due on October 18. Satyam Computer Services is scheduled to release its numbers on October 23.
It is understood from IT analysts that Satyam sees income from software services between Rs 475-490 crore, with operating margins at around 31 per cent. It expects an EPS of Rs 3.50-3.65. Wipro, on the other hand, sees revenues from IT services at around Rs 675 crore.
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Most fund managers said billing rate pressure is finally off and volume growth will come to the rescue of the tech majors. These are trends in the positive direction, coupled with the confirmation of the fact that the decline in margins has finally been arrested.
Anup Maheshwari, fund manager, equities, at DSP Merrill Lynch, said: