Infosys (NASDAQ:INFY) has reported what it described as “industry-leading” revenue growth of 15.3% with healthy 21% operating margins for the year to March 31, 2023.
However, shares of the leader in next-generation digital services and consulting toppled close to 10% in morning trade after its fourth-quarter performance and forward guidance missed expectations.
CEO Salil Parekh also told a media briefing that the company doesn’t have a “clear view” of the war and there was a “slowing cycle” in closing deals, according to a Reuters report.
The company posted 4Q revenue of $4.55 billion, up from $4.28 billion in 4Q 2022, resulting in full-year revenue of $18.2 billion. Operating profit rose to $957 million from $920 million, taking the total for the year to $3.83 billion, up from $3.76 billion in 2022. Basic earnings per share were steady at $0.18, while for FY23 they were a cent higher at $0.71.
"Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients," Parekh said in a statement. "As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline."
The company has guided for revenue growth of 4-7% in constant currency for fiscal 2024, with an operating margin of 20-22%. The expected growth fell short of analysts' expectations for a 10.7% increase and would be the slowest since 2018, according to analysts polled by Reuters.
Infosys (NASDAQ:INFY)’ shares were down 9.6% at $15.54 by late morning in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com