The second-largest software services exporter Infosys Ltd cut its fiscal-year revenue growth target for the second time in three months on an uncertain business outlook, sending its shares tumbling more than 5 percent.
Reporting a 6.1 per cent rise in second-quarter net profit, Infosys said on Friday it now expected revenue to grow between 8 per cent and 9 per cent in constant currency terms in the fiscal year to March 31, 2017. Its previous revenue growth target, issued in July, was 10.5-12 per cent, already lowered from the up to 13.5 per cent it said it expected in April.
India’s more-than-$150 billion software services sector depends on North America and Europe for the majority of its revenue. The impending US presidential election and the implications of Britain’s ‘Brexit’ move to exit the European Union have both weighed on spending by western clients.