India’s Infosys cuts FY outlook in challenging environment after Q1 profit miss – One America News Network

BENGALURU (Reuters) – Indian software services provider Infosys on Thursday cut its full-year revenue growth outlook, due to a challenging environment, after reporting first quarter profit below estimates.

The country’s second-largest IT services firm by revenue said its full-year revenue growth was seen at 1-3.5% on a constant currency basis, down from its prior view of 4-7%.

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Consolidated net profit rose 10.9% to 59.45 billion rupees ($725.5 million) in the three months to June 30.

Analysts had expected a profit of 61.41 billion rupees, Refinitiv data shows.

India’s IT services companies have kicked off the earnings season on a weaker note, with market leader Tata Consultancy Services warning of an uncertain demand environment, with smaller peers HCLTech and Wipro reporting and projecting muted growth.

Businesses are cutting back spending on discretionary IT projects amid steep inflation that stoked interest rates.

Infosys saw its large deal signings rise to $2.3 billion rupees from $1.7 billion year ago.

($1 = 81.9409 Indian rupees)

(Reporting by Sethuraman NR in Bengaluru; Editing by Sonia Cheema)