Infy, HCL cut FY24 growth forecast

Infosys Ltd and HCL Technologies Ltd on Thursday said their 2023-24 revenue growth will be weaker than their earlier forecasts as their large foreign clients tighten purse strings amid economic uncertainties.

- Shouvik Das

With India's largest tech services company, Tata Consultancy Services Ltd, already witnessing a revenue decline in the second quarter, this portends a depressing year for at least three of India's Big Five tech companies.

Infosys, India's second-largest technology services provider, on Thursday slashed its growth guidance for a second straight time and now expects it at 1-2.5% in constant currency terms in 2023-24. Constant currency disregards the impact of exchange rate fluctuations.

In April, Infosys signalled 2023-24 revenue growth of 4-7%; in July, this was scaled down to 1-3.5%.

In the April-September period, Infosys added $336 million in incremental revenue, translating to a growth of 3.7%. But management's expectation of at-best growth of 2.5% in 2023-24 implies a fall in revenue in the third and fourth quarters.