Infosys earns over 80% of its revenue from western markets. (AFP pic)
MUMBAI: Indian tech giant Infosys reported weaker-than-expected revenue growth for the March quarter today as a lingering client spending slowdown in the US tempered recovery hopes for the software services industry.
The Bengaluru-headquartered firm, which earns over 80% of its revenue from western markets, has stumbled in the last year after a Covid-induced growth boom.
High interest rates and inflation have hurt tech spending by global companies, leading to fewer deal wins and the cancellation of existing contracts for the Indian software outsourcing sector.
Infosys reported revenue of 379.23 billion rupees (US$4.54 billion) for the quarter, a 1.3% increase over the same period in the previous financial year.
The company’s net profit jumped 30% to hit US$954 million, but this was helped by a bump in other income.
Chief executive Salil Parekh said the macro environment had a “mixed outlook”.
“On the US I think, as you’ve seen, we had slower outlook,” he said.
Infosys’s North American business, the largest market for the company, reported a revenue decline of 2.1%.
“There’s been good traction with the cost and the efficiency and the consolidation nature of large deals. Whereas we see that digital programs or some discretionary work is still not as visible within the work we are seeing,” Parekh said.
Infosys has projected tepid sales growth for the 12 months ahead, forecasting revenue to grow between 1% and 3% on a constant-currency basis.
Shares in Infosys ended up 1.06% at the close of trading in Mumbai today.
Source link
