IT companies cut revenue growth guidance
BENGALURU: As clients are delaying the decision-making process and slowing down transformation and discretionary programmes, IT companies have cut their revenue guidance for this fiscal year. Infosys, HCLTech, and Happiest Minds have cut their revenue guidance outlook.
Infosys has slashed its FY24 guidance to 1-2.5%. Earlier in July, it slashed its FY24 revenue guidance from 4-7% to 1-3.5%.
At the Q2 earnings briefing, Salil Parekh, CEO and MD of Infosys said, “We are seeing discretionary and large transformation programmes have reduced significantly. And we are seeing the decision-making continue to be slow. And keeping that in mind we have given the guidance for the full year.”
The CEO sees the impact in telecom, hi-tech, in areas of financial services and retail sector.
Happiest Minds has lowered its FY24 growth guidance to 12% from 25%. “We had given revenue growth guidance for the year of 25% without making a distinction between organic and inorganic growth. Based on an assessment of market trends we are revising our revenue growth guidance for the year to 12% on an organic basis. Additional growth, if any, due to acquisition will be over and above this guidance,” Ashok Soota, Executive Chairman, said.
HCLTech cut its FY24 revenue guidance to 5-6% from 6-8%.
On Wipro, Motilal Oswal Financial Services said, “Despite healthy deal wins, softness is expected to continue in 3QFY24 as the firm has guided for a revenue performance in the range of -1.5% to -3.5% CC.”
TCS and LTIMindtree do not provide any growth guidance, but the management spoke about macro headwinds.