Connect with us

Business News

Infosys loses profit expectations on rising costs, raises annual revenue outlook

Published

on


India’s Infosys misses profit expectations on rising costs

Bengaluru:

Infosys Ltd on Sunday reported June-quarter profit that missed estimates, hurt by higher employee expenses, but the IT services company raised its annual revenue outlook, citing a strong demand outlook.

The Bengaluru-based company expects revenue growth of 14 per cent-16 per cent in March fiscal, slightly up from the 13 per cent – 15 per cent forecast in April.

Infosys retained its guidance for operating margin for the year at 21 per cent – 23 per cent, unchanged from its April forecast.

Infosys’ operating margin declined 3.6 per cent year-on-year to 20.1 per cent in the June quarter.

Smaller rivals like Infosys’ big IT rival Tata Consultancy Services and HCL Technologies have also seen their margins fall as they grapple with a high sector-wide talent churn and are trying to retain employees.

Infosys’ consolidated net profit stood at Rs 53.60 billion ($12.53 million) compared to Rs 51.95 billion a year ago.

Refinitiv data showed analysts had expected a profit of Rs 56.26 billion.

Revenue from operations grew 24 per cent to Rs 344.70 billion.

($1 = 79.8300 Indian Rupees)

,