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Infosys cuts full-year revenue forecast

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Reuters BENGALURU
Last Updated : Oct 24 2017 | 4:57 PM IST

BENGALURU (Reuters) - Indian software services company Infosys Ltd trimmed its revenue forecast for the year despite reporting a surprise rise in quarterly profit.

It said it expected its full-year revenue to rise 5.5-6.5 percent in constant currency, compared with its previous guidance of a 6.5-8.5 percent increase.

Profit after tax rose 3.3 percent to 37.26 billion rupees ($573 million) in the second quarter, beating the average analysts' estimate of 35.23 billion rupees, according to Thomson Reuters data.

The results are the first since Vishal Sikka quit as chief executive in August after a lengthy feud between the board and the company founders that also led to a reorganisation of the board. Nandan Nilekani, a co-founder and a former CEO, was named chairman and the company continues to search for a new CEO.

Bengaluru-based Infosys said its revenue from operations rose 1.5 percent to 175.67 billion rupees in the second quarter. Revenue from the financial services segment rose marginally to 47.18 billion rupees.

The Infosys board also reaffirmed that an investigation into alleged improprieties related to the acquisition of Israeli automation firm Panaya found no evidence of any wrongdoing.

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($1 = 65.0225 Indian rupees)

(Reporting by Tanvi Mehta and Jessica Kuruthukulangara; Editing by Muralikumar Anantharaman and Susan Fenton)

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First Published: Oct 24 2017 | 4:48 PM IST

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