Feb 7, 2001|
Indian software: 3QFY01 exports up 65% YoY
Software exports for the 3QFY01 stood at Rs 43.4 bn. The figure is 65% higher than for same quarter last year. This is an indication of the performance of the software industry. Most of the top rung software companies showed YoY growth of more than 100%. For the 1HFY01 the software industry in India generated revenue of Rs 171.5 bn against Rs 108.6 bn for the corresponding period in the previous year (up 58%). Of this, Rs 131 bn (i.e. 76%) was from exports.
NASSCOM had projected export earnings for the year to be at Rs 290 bn initially. However, later it scaled down the figure to Rs 285 bn. According to Mr. Devang Mehta, President NASSCOM, this was due to the devaluation of the rupee and had nothing to do with the impact of an economic slowdown.
The total export figure at the end of 9 months FY01 stands at Rs 174.5 bn. To achieve the Rs 285 bn target, the software sector will have to earn around 63% of combined earnings for the first three quarters in the period of January – March 2001. This looks difficult at first sight, but not unachievable. In the previous year, the fourth quarter of FY00 saw export earnings, which were equal to 61% of the consolidated nine month earnings of the first 3 quarters of FY00.
One of the drivers that could boost the exports would be increased outsourcing and shifting to offshore vendors by the corporates globally. According to a Merrill Lynch survey only 14% Fortune 500 companies used of offshore vendors when the survey was done. But the heartening fact was that 46% were actively considering offshore operations. This would spell vast opportunities for Indian software, but on a longer-term basis.
More Views on News
Aug 2, 2017
A better than expected turnaround in performance results in a change in view.
Jul 27, 2017
Digital services drive growth for Wipro in 1QFY18.
Jul 14, 2017
Infosys starts FY18 on an encouraging note with a stable performance.
Aug 5, 2017
How to get exclusive insider recommendations from Ankit Shah.
Jul 14, 2017
TCS starts FY18 decently despite an adverse currency impact.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407