Business Companies 15 Oct 2016 Infosys slashes reve ...

Infosys slashes revenue outlook

DECCAN CHRONICLE.
Published Oct 15, 2016, 1:18 am IST
Updated Oct 15, 2016, 1:19 am IST
The IT major reported a consolidated net profit of Rs 3,606 crore, up 6.1 per cent from the same period last year.
Infosys CEO Vishal Sikka (right) with COO Pravin Rao during the announcement of the second quarter financial results of the company at its headquarter in Bengaluru on Friday. (Photo: AP0
 Infosys CEO Vishal Sikka (right) with COO Pravin Rao during the announcement of the second quarter financial results of the company at its headquarter in Bengaluru on Friday. (Photo: AP0

Mumbai: Infosys  disappointed investors by lowering its annual revenue growth forecast for the second time in the last three months citing an uncertain external environment. While the company reported a better than expected net profit for the quarter, it slashed its FY17 growth guidance to 8-9 per cent in constant currency terms.

The IT major reported a consolidated net profit of Rs 3,606 crore, up 6.1 per cent from the same period last year. “While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software plus services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance,” said Vishal Sikka, CEO, Infosys Ltd.

 

However he added that the company had won large orders of over $1.2 billion, which according to him was good in a difficult and structurally challenging time.
Infosys added 78 clients in Q2, taking its total number of active clients to 1,136. In July, Infosys had lowered its FY17 revenue growth guidance to between 10.5 per cent – 12 per cent amidst slowdown in discretionary spending in its key markets abroad.  

“While Infosys Q2FY17 constant currency revenue growth of 3.9 per cent QoQ was significantly higher than our estimates, some of the headwinds that we were factoring in Q2, primarily from the RBS contract termination will pan out in second half of FY17,” said Ashish Chopra,  Motilal Oswal Securities.

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