IT company results....

ok... the Re has fallen to almost 50 to a $--- strange thinking that a few months ago- we were at 38... and all the experts suggesting that it will go to 35 and beyond.. IT companies hedged their revenues in MM$ and BN$ at what rates they could get at that time- hedging for their lives..

today- the revenues for this quarter should be outstanding from an india eps - but still markets are bleeding- with companies like infy trading at a 11-12 band of P/E-- imagine that!

so whats there in future for IT companies- further pain- no doubt about that. Jobs are going to become scarce, increments are going to become smaller-and jumps from one company to another is going to be the story of the past. Companies will stop additional freebies- all to ensure they maintain good to decent margins .

we saw what happened in TCS with variable pay being cut at all levels- when the $ was at 38. Now with the $ at 50- those cuts will still continue if not become sharper.

The IT and ITES companies will need to reinvent themselves as they go forward-how well they succeed only time will tell- till that time- it is best to stay away for these counters for the next few months- they will become cheaper and then itwould be the best time to go and invest in them.