Infosys cuts annual sales forecast

New Delhi: India’s second-largest IT services firm Infosys on Thursday reported a lower-than-expected 7.3 per cent fall in net profit in the December quarter on sluggish demand from clients and cut its annual sales forecast. The company posted a net profit (attributable to shareholders) of Rs6,106 crore compared to Rs6,586 crore in the year-ago period, Infosys said in a regulatory filing.

The company’s consolidated revenue from operations increased 1.3 per cent to Rs38,821 crore during the third quarter of the ongoing fiscal from Rs38,318 crore a year ago. Infosys bagged deals worth $3.2 billion, including a mega deal during the quarter, which included 71 per cent net new wins.

“Our performance in the third quarter was resilient. Large deal wins were strong at $3.2 billion, with 71 per cent of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency, and automation. This is the highest deal win in the nine quarteRsthat the company has ever had,” Infosys CEO and MD Salil Parekh said. He said there has been no change in clients' behaviour on spending during the reported quarter.

Infosys’ revenue will increase 1.5-2 per cent in the fiscal year through March 2024 as against the 1-2.5 per cent guidance it had given in October. “For the first three quarters, our revenue grew 1.8 per cent over the same period last year in constant currency. Based on the performance in the first three quarteRsand outlook for the fourth quarter, we are tightening our revenue growth guidance for FY24 to 1.5-2 per cent growth in constant currency.”