The results, declared after markets closed, validated investors’ fears, as the company cut its guidance. Its fiscal year 2018 (FY18) revenue growth guidance stands revised down to 5.5% from 6.5% at the lower end of the guidance range, and down to 6.5% from 8.5% at the higher end. Many analysts were expecting Infosys to reduce its revenue growth guidance, so this was not a complete surprise. “At the aggregate level, we see organic revenue growth of 5-7% in FY18 for large (tier I) IT companies in India.”Now, Infosys’s constant currency revenue growth of 2.2% sequentially is largely in line with Street estimates. But the reduction in its revenue growth guidance indicates that recovery could be a long-drawn process.

Source: Mint October 25, 2017 01:41 UTC