Press Esc to close
Saturday 19 August 2017
News updated at 3:24 AM IST

Infosys forecasts tepid revenue growth, shares dive

BANGALORE, Apr 12, 2013, (Reuters) - 11:58 IST
Reuters Image
Infosys Ltd(INFY.NS), India's No. 2 IT services exporter, forecast lower revenue growth than analysts had expected for this fiscal year, citing a challenging global economy, sending its shares tumbling nearly 18 percent.

The company said it expects dollar revenue for the fiscal year that began this month to grow between 6 percent and 10 percent. Most analysts had estimated that Infosys would set a target for revenue growth of as much as 12 percent.

Infosys has been focusing on stepping up sales, with a willingness to sacrifice margins, to help it win business and halt its loss of market share.

For about two years, Infosys, a bellwether of India's $108 billion IT services sector, had been losing market share to more aggressive rivals such as industry leader Tata Consultancy Services Ltd (TCS) (TCS.NS) and No. 4 HCL Technologies Ltd (HCLT.NS).

The rough patch was caused in part by the challenge of implementing its "Infosys 3.0" push for revenue through the development of its own software platforms, to differentiate its services from those of its competitors, amid sluggish demand from clients in its core western markets.

"The forecast looks quite conservative, which is a concern. The fiscal 2013 was also not very good for Infosys," said K.K. Mital, CEO for portfolio management services at Globe Capital in New Delhi.

"This looks like company specific problem. Even mid-cap companies are expected to perform better than this."

Consolidated net profit for the fiscal fourth quarter ended March 31 was 23.9 billion rupees, compared with 23.16 billion in the same period a year earlier. Revenue for the quarter rose 18 percent to 104.5 billion rupees.

That compared with an average estimate of 23 billion rupees in a survey of 18 analysts by Thomson Reuters I/B/E/S. Revenue was expected to have risen 21 percent to 107 billion rupees.

Infosys also said it would set aside up to $100 million to invest in products, platforms and solutions ideas.

Shares of the company, valued at about $30 billion, gained nearly 26 percent so far this year as of Thursday after falling 16 percent in 2012.

Go to Top

Photo Gallery
A  file photo of  Infosys CEO Vishal Sikka...

A file photo of Infosys CEO Vishal Sikka...

Trainee recruits of Army undergo physical training at the Parachute Regiment Training...

Trainee recruits of Army undergo physical training at the Parachute Regiment Training...

A Chimpanzee looks on, at Alipore Zoological Garden in Kolkata...

A Chimpanzee looks on, at Alipore Zoological Garden in Kolkata...

A beautiful view of peacock on blooming tree branch at Bengre in Mangaluru...

A beautiful view of peacock on blooming tree branch at Bengre in Mangaluru...

People with their household belongings move to a relief camp from a flood-hit region...

People with their household belongings move to a relief camp from a flood-hit region...

Village women carry a Tri-colour as they row a boat across River Churni during Independence...

Village women carry a Tri-colour as they row a boat across River Churni during Independence...

An aerial view of a flood-hit area at Bal Bal in Betiah in West Chaparan, Bihar...

An aerial view of a flood-hit area at Bal Bal in Betiah in West Chaparan, Bihar...

A boy rows a makeshift raft as he transports a woman and a cooking gas cylinder through...

A boy rows a makeshift raft as he transports a woman and a cooking gas cylinder through...

A fruit vendor, holding an umbrella, waits for customers at a street in Kolkata on Thursday.

A fruit vendor, holding an umbrella, waits for customers at a street in Kolkata on Thursday.

Ranbir Kapoor, actor and co-owner Mumbai City FC meeting fans during the Indian Super League...

Ranbir Kapoor, actor and co-owner Mumbai City FC meeting fans during the Indian Super League...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.