From mint · Jas Bardia · · 1m 40s
Infosys Q2 Revenue Dips, Cuts Full-Year Growth Guidance
Infosys reports slowest quarterly growth in three years for Indian IT services, cutting full-year revenue guidance to 1-2%.
In brief
Infosys reports slowest quarterly growth in three years for Indian IT services, cutting full-year revenue guidance to 1-2%. Infosys lowered its full-year revenue growth guidance to 1-2% in constant currency terms after reporting the slowest second-quarter growth in three years for India's top tech services firms…
Infosys Q2 Revenue Dips
Infosys reported the slowest second-quarter growth in three years for India's top tech services firms, with revenue at $5.15 billion.
Revenue Growth Slows
Three-fourths of the revenue growth came from energy, utilities and resources firms, up 1.24% sequentially and 1.3% year-on-year.
Big Five Q2 Results
Tata Consultancy Services, HCL Technologies, Tech Mahindra, and Wipro reported revenue growth of 0.24%, 2.03%, 1.99%, and a 0.11% decline, respectively.
Q2 Performance Weakens
At least three of the Big Five reported their worst second-quarter growth in three years, with weak demand due to West Asia tensions and rising automation tools.
CEO on Market Conditions
Salil Parekh, CEO of Infosys, cited a challenging macroeconomic environment, including interest rate hikes and tariffs, affecting global clients.
Revenue Guidance Cut
Infosys lowered its full-year revenue growth guidance to 1-2% in constant currency terms, from 1.5-3% in the previous quarter.
Leadership Change Coming
Ashiss Kumar Dash will replace CEO Salil Parekh next April after a nine-year tenure, following the company's Q2 results.
Operating Margins Drop
Infosys reported a fall in operating margins to 21%, down 10 basis points from the previous quarter, making it the first Big Five to report declining margins.
Headcount and Hiring
Infosys added 4,480 employees to reach 332,542, while the Big Five saw mixed headcount changes with Wipro cutting over 6,700 staff.
The bottom line
Infosys lowered its full-year revenue growth guidance to 1-2% in constant currency terms after reporting the slowest second-quarter growth in three years for India's top tech services firms.
