Infosys (NASDAQ:INFY)' shares fell by double digits after the company’s outlook raised red flags around the health of the Indian IT services sector as demand in the United States and Europe wanes amid broader recession fears.
On Thursday the company, which is India’s second-largest IT services firm, forecast revenue growth for the 2024 financial year to end on March 31, 2024, of between 4% and -7%. This was well below analyst expectations of 10.7%, as reported by Reuters.
It also projected an operating margin of between 20% and -22%.
Infosys (NASDAQ:INFY)’ weak forecast came just after its larger competitor Tata Consultancy Services posted a profit miss and warned of demand challenges, specifically in the European market.
After tumbling 15% earlier on Monday, Infosys’ India-listed shares had shed 9.4% at 1,258.30 INR in the late morning. Its NYSE-listed shares had fallen 0.3% to US$15.14.
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