Infosys Limited, India's 2nd largest software services exporter, cut its fiscal-year revenue growth target for the 2nd time in 3 months on an unsure business outlook, sending its shares tumbling over 5 per cent.
Reporting a 6.1 per cent rise in Q2 or second-quarter net profit, Infosys said on Friday that it now expected revenue to grow between 8 per cent and 9 per cent in constant currency terms in the fiscal year to 31st March, 2017. Its previous revenue growth target, which was issued in the month of July, was 10.5-12 per cent, already lowered from the up to 13.5 per cent it said it expected in the month of April.
India's more-than-150 billion dollar software services sector depends on Europe and North America for the majority of its revenue. The impending United States presidential election and the implications of Britain's Brexit move to exit the European Union have both weighed on spending by the western clients.
Infosys had warned in the month of August that it was seeing some softness in business after the June Brexit vote in Britain.
Vishal Sikka - Chief Executive said in a statement on Friday that the revision took into consideration their performance in earlier half of the year and the near-term unsure business outlook.
After falling as much as 5.3 per cent after the guidance cut was announced, Infosys share price was trading 2.6 per cent down at 10:23 a.m. in a Mumbai market that was little changed.
In the current Q2, its consolidated net profit rose 6.1 per cent ahead of analysts' estimates. Its revenue rose 10.7 per cent to Rs.17,310 cr.
The company said on Friday that it added 78 clients during the three months to September, taking its total number of clients (active) to a numerical figure of ‘1,136’.
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