BENGALURU (Reuters) -Infosys Ltd on Thursday forecast slower revenue growth for the current fiscal year compared with analysts’ expectations, amid a turmoil in the U.S. banking sector that has prompted clients to tighten spending.
India’s second-largest IT services firm expects revenue growth of 4%-7% for the fiscal year ending March 2024. Analysts expected growth of 10.73% for the period, according to Refinitiv IBES data.
The Bengaluru-based company sees FY24 operating margin in the range of 20% to 22%.
The conservative guidance comes on the back of ongoing upheaval in the U.S. banking system and an edgy macroeconomic environment.
Larger rival and India’s top IT exporter Tata Consultancy Services on Wednesday said deferred project spending by its North American banking clients led to “weaker” than expected fourth-quarter results.
Infosys won large deals worth $2.1 billion in the fourth quarter, down from $2.3 billion in the same period the previous year.
Infosys’ consolidated net profit rose 7.77% to 61.28 billion rupees ($749.10 million) in the three months ended March 31, while revenue rose 16% to 374.41 billion rupees.
($1 = 81.8050 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; editing by Eileen Soreng)
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