Infosys cuts FY24 revenue forecast amid market challenges
BANGALORE, INDIA — IT services giant Infosys reduced its revenue growth projection from 4-7 per cent to 1-3.5 per cent for FY2024 in response to an increasingly challenging market environment.
Infosys Managing Director and CEO Sahil Parekh attributed the revised revenue guidance to the slowing down of client transformation programs.
This news led to a nearly 9 per cent drop in Infosys’ American Depositary Receipts (ADR) during the New York Stock Exchange (NYSE) pre-market sessions.
Despite this, the company maintains its 20-22% operating margin guidance. Infosys reported a net profit increase of 11% for the previous year, amounting to ₹5,945 crore (US$725 million).
For the quarter ending in June, Infosys’ consolidated operational revenue rose to ₹37,933 crore (US$4.62 billion), representing a year-on-year growth of 4.2%.
Over this period, the firm’s attrition rate improved, reaching 17.3%. Infosys added 99 clients during Q1FY24, increasing the total active clients to 1,883 as of June 30, 2023.
The updated revenue forecast of Infosys came after the creation of its subsidiary, Infosys Public Services Canada (IPS Canada). With its headquarters in Ottawa and branches in Mississauga, Calgary, and Burnaby, IPS Canada aims to propel digital transformation across Canadian public sector organizations. This development signifies the latest expansion of Infosys in the country.
