Infosys shares tumble after Indian IT group slashes annual revenue guidance

Investing.com — US-listed shares in Infosys Ltd. ADR (NYSE:) tumbled in premarket trading Thursday after the Indian IT firm deeply slashed its 2023 revenue forecast, following a slowdown in customer spending that hit first quarter earnings.

Full-year revenue is now projected to grow by 1% to 3.5% on a constant currency basis. The company had previously forecast an increase between 4% to 7%.

At a news conference, chief executive Salil Parekh noted that there has been a marked downturn in discretionary expenditures by clients. The demand environment for Infosys and its IT peers has been mired in uncertainty as recently elevated inflation pushes many business to rein in spending.

Consolidated net profit of INR 59.54 billion in the three months to June 30 grew by 10.9% but still came in below Refinitiv estimates cited by Reuters.