Business in the 1990's found the lure of IT as profits surged,
but sustaining the same is in doubt now. All is not well for IT
shares these days; almost Rs 25,000 crore, has been lost in falling
share prices of IT companies in a week - and nobody saw it coming.
The initial hinting of this painful exercise was made by 'Infosys'
when it made its quarterly announcements, and declared that it was
looking at only a 10 percent growth during the year 2003-04. Ever
since, it's been a "BIYCLESTAND SYNDROME". The mood all
around the market with respect to IT companies is that of increasing
average sales and sinking profit margins. This could be probably
attributed to the heavy pricing demanded by most MNC's as a result
of the global slow down.
But there is always a glimmer of hope and maybe companies who are
under-promising now will over deliver later.
