Infosys' American Depository Receipt plunged over 9% after the company slashed its revenue guidance for the current fiscal.
The ADR suffered losses as it traded 9.31% lower at $16.06 as of 9:44 a.m. EST on the New York Stock Exchange.
The Bengaluru-based IT company now expects to clock constant-currency revenue growth of 1-3.5% in FY24, as compared with 4-7% estimated at the end of the January-March quarter.
That compares with the 15.4% top-line growth Infosys reported in FY23. Its operational profitability is likely to come in at 20–22% in FY24.
The company bagged large deals with a total contract value of $2.3 billion in the April-June quarter.
It cited delays in decision-making by clients as the reason for the sharp revision in revenue growth guidance. Deals that are getting signed now may materialise in revenue only in the second half of the fiscal.
"Overall, decision-making has slowed down. There have been delays at the start and in the decision-making," Salil Parekh, chief executive at Infosys, said in a post-earnings media interaction. "Clients in financial services, asset management, payments, and telecom are reducing their volume of work."
Meanwhile, its revenue rose 1.3% to Rs 37,933 crore, meeting the Bloomberg consensus estimate of Rs 37,843 crore.
On Thursday, shares of Infosys Ltd. fell 1.73% to Rs 1,448.85 apiece on the BSE, even as the benchmark Sensex ended the day 0.71% higher at 67,571.90 points. The quarterly results were declared after market hours.
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