Both information technology (IT) services firms saw business activity slowdown in the key market of North America. Unplanned project ramp downs, delays in decision making and one-off impact due to certain cancellations hit revenue growth, the Infosys management said. Demand weakness was broad-based across financial services, telecom and high-tech verticals.
Remember, just in January, Infosys had raised its FY23 CC revenue growth guidance to 16-16.5% from 15-16% earlier. But evidently, the scenario didn't pan out as expected with the company missing its guidance after clocking 15.4% CC revenue growth. "While the US macro had been deteriorating all through CY22, Infosys's management was holding out hope likely on its interactions with clients and deal flow. In a sudden turn of events, worse than that for TCS, March ¹23 quarter has seen deferments and cancellation of projects," Girish Pai, head of research at Nirmal Bang Institutional Equities wrote in a report.
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