BENGALURU (Reuters) – Infosys reported lower-than-expected fourth-quarter revenue on Thursday, in a seasonally weak period for India’s No.2 IT services provider, as cautious clients curtailed spending amid macroeconomic uncertainties.
Infosys reported revenue growth of 1.3% on-year at 379.23 billion rupees ($4.54 billion) in the January-March quarter, compared to analysts’ expectation of 386.24 billion rupees as per LSEG data.
For fiscal year 2025, Infosys forecast revenue growth between 1% and 3% in constant currency.
India’s $254 billion IT sector has been struggling in recent quarters as clients cut spending on non-essential projects amid inflationary pressures.
This has led companies to accept tougher contract terms to win large deals, while grappling with clients renegotiating, delaying or cancelling contracts, resulting in a sharp slowdown in the industry’s growth from the pandemic-fuelled boom a few years back.
Infosys’ consolidated profit rose 30% to 79.69 billion rupees.
Tata Consultancy Services, India’s top IT services provider, said last week that weak spending continued to be an overhang, as it reported lower-than-expected fourth-quarter revenue due to subdued growth in its biggest vertical and largest market.
($1 = 83.5130 Indian rupees)
(Reporting by Haripriya Suresh; Editing by Sonia Cheema)
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