Infosys misses profit targets due to rising costs; increases annual revenue outlook
Due to greater staff costs, Infosys’ June quarter profit fell short of expectations, but the IT services provider increased its sales outlook.
The IT services provider Infosys Ltd. posted a June quarter profit on Sunday that fell short of expectations due to rising staff costs, but it increased its annual revenue prediction due to robust demand expectations.
The Bengaluru-based company projects sales growth of 14% to 16% for the fiscal year ending in March, a small improvement over its April prediction of 13% to 15%.
In line with its April prediction, Infosys maintained its operating margin target for the year at 20% to 23%.
For the June quarter, Infosys’ operating margins were 20.1%, which was a decline of 3.6% from the same period last year.
The margins of Infosys’ larger IT rival Tata Consultancy Services as well as smaller rivals like HCL Technologies have shrunk as they fight a higher rate of talent churn throughout the industry.
Infosys announced that its consolidated net profit was 53.60 billion rupees ($12.53 million), up from 51.95 billion rupees a year earlier.
Refinitiv data reveals that analysts had projected a profit of 56.26 billion rupees.
To 344.70 billion rupees, operating revenue increased by 24%.