BENGALURU: Infosys and HCL Tech have both cut revenue forecasts for the 2023-24 financial year, underscoring the continuing softness in discretionary spends by clients, and the volatile macro-economic environment. The headwinds in the banking and financial services vertical are particularly strong.
Announcing its financial results for the quarter ended September on Thursday, Infosys said it now expects its revenue to grow between 1% and 2.5% in FY24. Three months ago, it had guided for growth between 1% and 3.5%, and at the beginning of the financial year, it had guided for 4-7%. Clearly, client demand has sharply slowed.
Announcing its financial results for the quarter ended September on Thursday, Infosys said it now expects its revenue to grow between 1% and 2.5% in FY24. Three months ago, it had guided for growth between 1% and 3.5%, and at the beginning of the financial year, it had guided for 4-7%. Clearly, client demand has sharply slowed.
The weak forecast pushed the share price down over 6% on the NYSE. The company announced its results after the local stock markets closed on Thursday. The company’s worst growth in the past 15 years so far has been during the great financial crisis, when growth fell to 3%.
Infosys CEO & MD Salil Parekh said, “We are seeing that the discretionary and large transformation programmes have reduced significantly, and decision-making continues to be slow. Keeping these in mind, we’ve given guidance for the full year.”
