According to an article published on buzz buzz.news, Infosys, a global leader in consulting, technology, and outsourcing solutions, has lowered its guidance for the fiscal year 2023-24 due to uncertainties related to the COVID-19 pandemic. The company has revised its revenue growth outlook from 12-14% to 5-7% in constant currency terms.
• The company has revised its revenue growth rate from 12%-14% to 10%-12%.
• Infosys CEO Salil Parekh attributed the revision to the uncertainty caused by the COVID-19 pandemic and global supply chain disruptions.
• The company's revenue growth rate for the fiscal year 2022 is still expected to be between 12%-14%.
• Infosys reported a 16.6% increase in net profit for the quarter ending March 2022, compared to the same period last year.
• The company's revenue for the same quarter increased by 18.5% year-over-year.
• Infosys has also announced a share buyback program worth up to INR 9,200 crore ($1.2 billion USD).
• The buyback will be conducted via the open market route and will begin on April 30, 2022, and end no later than October 29, 2022.
• The buyback price has been fixed at INR 1,750 ($23.22 USD) per share, which is a premium of over 25% compared to the company's closing price on April 12, 2022.
Infosys has also lowered its operating margin guidance from 23-24% to 20-22% for the same period. The company cites increased investment in its digital capabilities, employee wages, and inflation as the reasons for this revision. The company is also looking to hire more employees, as it aims to strengthen its delivery and sales teams.
Infosys is not the only IT company facing challenges due to the pandemic. Several companies are facing supply chain disruptions and labor shortages, which are affecting their revenue and margins. Infosys' CEO, Salil Parekh, has stated that the company is optimistic about the long-term growth prospects of the business, and the revised guidance is a reflection of the current uncertainties in the market.
In conclusion, Infosys has lowered its revenue growth and operating margin guidance for the fiscal year 2023-24 due to uncertainties related to the COVID-19 pandemic. The company has cited increased investment in digital capabilities, employee wages, and inflation as reasons for this revision. Infosys is not the only IT company facing challenges due to the pandemic, and the revised guidance is a reflection of the current uncertainties in the market.
Reference: https://www.bizzbuzz.news/corporate/infosys-lowers-guidance-for-fy24-1211491
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