{"id":8954,"date":"2023-04-13T14:41:37","date_gmt":"2023-04-13T14:41:37","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/indias-infosys-forecasts-slower\/"},"modified":"2023-04-13T14:46:31","modified_gmt":"2023-04-13T14:46:31","slug":"infosys-revenue-growth-to","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/infosys-revenue-growth-to\/","title":{"rendered":"Infosys revenue growth to hit six-year low as client spending falls"},"content":{"rendered":"

By Sethuraman N R and Nishit Navin<\/p>\n

BENGALURU (Reuters) -Infosys Ltd on Thursday forecast revenue growth would hit a six-year low this fiscal as India’s No.2 IT services exporter grapples with clients clamping down or deferring spending due to growing fears of a recession in many countries.<\/p>\n

Infosys said it expects revenue to increase 4%-7%, on a constant currency basis, in the year ending March 2024, well below analysts’ expectations of 10.7%. The previous slowest growth was a 5.8% increase in fiscal 2018.<\/p>\n

The company’s U.S.-listed shares sank as much as 9% on Thursday, to $15.53, their lowest since December 2020. Its India-listed shares closed down 2.7% ahead of the results, weighed down by a similarly disappointing quarterly report from larger rival Tata Consultancy Services on Wednesday.<\/p>\n

Infosys does not have a “clear view” of the year and there was a “slowing cycle” in closing deals, Chief Executive Salil Parekh said at a media briefing. The uncertainty was highlighted by Infosys refraining from its usual start-of-the-year practice of setting a target for hiring freshers.<\/p>\n

The warnings from India’s top two IT exporters highlight the travails for the sector, which earns more than 25% of its revenue from just the U.S. and European banking, financial, services and insurance (BFSI) sector.<\/p>\n

For Infosys in particular, the forecast of a slowdown comes just three months after it raised its revenue forecast for fiscal 2023, citing a strong deal pipeline.<\/p>\n

However, its revenue growth of 15.4% ultimately fell short of that forecast of 16%-16.5%.<\/p>\n

Parekh said there were “unplanned rampdowns” in client projects in the January-March quarter, across a number of sectors, including financial\u00a0services.<\/p>\n

There were also “one-timers” such as project cancellations and “specific client issues,” finance chief, Nilanjan Roy, said.<\/p>\n

Infosys said it won large deals worth $2.1 billion in the quarter, less than the $2.3 billion it won a year ago.<\/p>\n

As a result, Infosys’s revenue increased a smaller-than-expected 16% to 374.41 billion rupees ($4.58 billion) in the quarter, while its profit of 61.28 billion rupees also missed analysts’ expectations, according to Refinitiv IBES.<\/p>\n

The Bengaluru-based company’s operating margin fell to 21.1% in the quarter, and is expected to stay between 20% and 22% this fiscal year, it said. ($1 = 81.7560 Indian rupees)<\/p>\n

(Reporting by Nallur Sethuraman and Nishit Navin in Bengaluru; editing by Eileen Soreng and Savio D’Souza)<\/p>\n

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By Sethuraman N R and Nishit Navin BENGALURU (Reuters) -Infosys Ltd on Thursday forecast revenue growth would hit a six-year low this fiscal as India’s No.2 IT services exporter grapples with clients clamping down or deferring spending due to growing fears of a recession in many countries. Infosys said it expects revenue to increase 4%-7%, […]<\/p>\n","protected":false},"author":8,"featured_media":8955,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1220],"tags":[1223],"class_list":["post-8954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-technology","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ3C0DC-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/8954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=8954"}],"version-history":[{"count":4,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/8954\/revisions"}],"predecessor-version":[{"id":9327,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/8954\/revisions\/9327"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/8955"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=8954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=8954"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=8954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}