Infosys Q2 maintains revenue outlook

It does not look like Infosys' issues have bottomed out.

Written by FeBureau | Bangalore | Published: October 12, 2012 10:25:00 am

Infosys Q2 results: It does not look like Infosys’ issues have bottomed out. The IT major may have met expectations with a 3.5% sequential rise in net profit,but its call to just maintain its current revenue growth outlook of at least 5% was immensely disappointing. The market was expecting Infosys to raise its revenue growth guidance to 6.5%,following the acquisition of Swiss consultancy Lodestone. Its inability to do so,is a pointer to the company’s continuing short term visibility issues and is reflective of the slow pace of the global outsourcing business. In July Infosys had nearly halved its outlook from the 8-10% growth forecast during the beginning of the fiscal. That was a big jolt to the markets,ut Friday’s decision to maintain that outlook is equally surprising.

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Agency inputs

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