MUMBAI, July 20 (AFP): Indian information technology giant Infosys sharply cut its revenue growth outlook on Thursday as it reported softer-than-expected profits during the April-June quarter on the back of global economic headwinds.
Infosys, India's second-largest software firm, slashed its revenue growth guidance for the financial year ending March 2024 to 1.0-3.5 per cent in constant currency terms, down from its previous estimate of four to seven per cent.
The Bengaluru-headquartered firm said net profit came in at 59.45 billion rupees ($725.5 million) in the three months to June 30, an increase of 10.9 per cent from the same period last year.
But net profit fell by 3.0 per cent compared to the January-March period, a reflection of the tough conditions facing the sector amid a slowing global economy.
The results were slightly below analysts' expectations.
"The way a lot of the transformation programmes that are running today, they are funded from cost efficiency that comes through that programme itself. So overall, the decision-making sometimes is slowing down," Infosys chief executive Salil Parekh said at a media briefing.
"And we're seeing the start dates-in terms of where some of these programmes are likely to start-more towards the back end of the year, and that's the reason we're seeing the revenue impact through the year."
Revenue grew 4.2 per cent year-on-year and rose by 1.0 per cent quarter-on-quarter in constant currency terms.
The company said it won large deals worth $2.3 billion in the quarter, up from $2.1 billion in the first three months of the year.
Employee attrition, a closely watched metric in the tech sector, eased to 17.3 per cent from 20.9 per cent in the previous quarter. Its overall headcount fell by almost 7,000 during the period.
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