India’s Infosys forecasts slower FY24 revenue growth of 4%-7%

INFOSYS on Thursday (Apr 13) forecast slower revenue growth for the current fiscal year compared with analysts’ expectations, amid a turmoil in the US banking sector that has prompted clients to tighten spending.

India’s second-largest IT services firm expects revenue growth of 4 per cent-7 per cent for the fiscal year ending March 2024. Analysts expected growth of 10.73 per cent for the period, according to Refinitiv IBES data.

The Bengaluru-based company sees FY24 operating margin in the range of 20 per cent to 22 per cent.

The conservative guidance comes on the back of ongoing upheaval in the US banking system and an edgy macroeconomic environment.

Larger rival and India’s top IT exporter Tata Consultancy Services on Wednesday said deferred project spending by its North American banking clients led to “weaker” than expected fourth-quarter results.

Infosys won large deals worth US$2.1 billion in the fourth quarter, down from US$2.3 billion in the same period the previous year.

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Infosys’ consolidated net profit rose 7.77 per cent to 61.28 billion rupees (S$991.6 million) in the three months ended Mar 31, while revenue rose 16 per cent to 374.41 billion rupees. REUTERS