Infosys disappoints the street

 The fall today was brought about by yet another quarter of poor results. The company reported a quarter-on-quarter (QoQ) decline of 1.2% in net profits. In dollar terms, the decline was even worse at 10% QoQ. Slowdown in the company's major markets, US and Europe, has been cited as one major reason for this decline. In addition to that, global uncertainty continues to haunt the future of the company. This has resulted in a weaker guidance for FY13 by the company's management. Though one should not really put too much faith in short term quarterly results. However, it does appear that the IT industry is going through a slowdown at least in the short term. In the long term the need for outsourcing and India's proven capabilities in the field would help boost the industry's growth.