Infosys cuts full-year revenue forecast despite rise in quarterly profit | business news | Hindustan Times
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Infosys cuts full-year revenue forecast despite rise in quarterly profit

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

business Updated: Oct 24, 2017 16:58 IST
The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017.
The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. (Reuters Photo)

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% in constant currency, compared with its previous guidance of a 6.5-8.5% increase.

Profit after tax rose 3.3% 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% 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.

($1 = 65.0225 Indian rupees)