2023-07-20 09:22:04 ET
Infosys ( NYSE: INFY ) stock fell ~10% premarket on Thursday after the Indian tech services provider reduced its FY24 revenue forecast, while announcing Q1 results.
The company now expects FY24 revenue growth outlook to be between 1.0%-3.5%, compared to 4%-7% provided during FY23 results on April 13.
Q1 revenue grew ~3.9% Y/Y (+4.2% at cc) to $4.62B, EPS increased +6.6% $0.17.
"We had a solid Q1 with a growth of 4.2% and large deals of $2.3 billion which helps us to set a strong foundation for future growth. Our generative AI capabilities are expanding well, with 80 active client projects," said CEO and MD Salil Parekh.
Revenue from Financial services fell -4.7% Y/Y, while Communication segments declined -6.1% Y/Y. Revenue from the manufacturing segment grew 21.3% Y/Y, while Energy, Utilities, Resources & Services revenue increased 8.3%. Retail segment revenue rose 4%, and Life Sciences segment grew 14.9% Y/Y.
Revenue from North America region, which represented 60.8% of total revenue in Q1'24, rose 2.3% Y/Y. Revenue from Europe grew +10.9 Y/Y, while India revenue increased 9.3% Y/Y. Revenue from Rest of the World fell -4.5% Y/Y.
The company's Operating margin in Q1 declined to 20.8%, compared to 20% in Q1'23.
INFY -10.05% to $15.93% premarket July 20
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Infosys stock slumps 10% after company slashes FY24 revenue outlook