Infosys slashes FY24 guidance

While the company's operating margin was in line, its profit missed estimates

- Shouvik Das

Infosys Ltd on Thursday reported its weakest June quarter revenue growth since FY21 and slashed its annual sales forecast for the current fiscal year.

The Bengaluru-based tech bellwether said that in constant currency terms, which does not account for currency fluctuations, revenue rose 1% from the preceding quarter and 4.2% from the year earlier to touch ₹37,933 crore. Net profit rose 10.9% from a year earlier to ₹5,945 crore, while operating margin came in at 20.8%, in line with its guidance of 20-22% for the fiscal.

Analysts surveyed by Bloomberg estimated a June quarter profit of ₹6,245 crore on revenue of ₹37,843 crore. An investor note from 29 June by broking firm ICICI Securities had projected revenue growth of 0.8% during the period.

Infosys has also revised its FY24 revenue growth guidance to 1-3.5%, down from 4-7% given at its FY23 earnings conference on 13 April, Salil Parekh, the chief executive of Infosys, said at a conference after the earnings announcement.