Press Esc to close
Sunday 31 May 2015
News updated at 1:28 AM IST
Weather
Max: 32.4°C
Min : 22.3°C
In Bengaluru
Sunny day

Infosys forecasts tepid revenue growth, shares dive

BANGALORE, Apr 12, 2013, (Reuters) -
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
An Indian eagle which was struck inside the fallen tree near Bengaluru Press Club...

An Indian eagle which was struck inside the fallen tree near Bengaluru Press Club...

India's Khalin Joshi tees off on the first hole during the final round of the Bashundhara...

India's Khalin Joshi tees off on the first hole during the final round of the Bashundhara...

Tobacco farmers and workers holding a protest in Vijaywada against anti-tobacco campaigns...

Tobacco farmers and workers holding a protest in Vijaywada against anti-tobacco campaigns...

An elderly woman smokes a Bidi on the eve of 'World No Tobacco Day' in Ahmedabad...

An elderly woman smokes a Bidi on the eve of 'World No Tobacco Day' in Ahmedabad...

Models walk the ramp at Indore Fashion Week in Indore...

Models walk the ramp at Indore Fashion Week in Indore...

Ramkumar Ramanathan of India play a backhand shot against Vishnuvardhan during ITF Mysuru Open...

Ramkumar Ramanathan of India play a backhand shot against Vishnuvardhan during ITF Mysuru Open...

Bollywood actress Sonakshi Sinha poses next to the newly launched BMW 6 Series Gran Coupe...

Bollywood actress Sonakshi Sinha poses next to the newly launched BMW 6 Series Gran Coupe...

Foreigners dance during Millionaire Bhanwar Lal Doshi's Diksha ceremony for becoming a Jain monk...

Foreigners dance during Millionaire Bhanwar Lal Doshi's Diksha ceremony for becoming a Jain monk...

A man takes a nap inside a car on a hot summer day in Ahmadabad...

A man takes a nap inside a car on a hot summer day in Ahmadabad...

A shepherd going with sheep to the next village near Jaliya Village in Beawar, Rajasthan...

A shepherd going with sheep to the next village near Jaliya Village in Beawar, Rajasthan...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523