Nonetheless, it was merely a MoU and amount was not included in the order book.
Meanwhile, while announcing September quarter earnings in October, Infosys trimmed its FY24E revenue growth outlook to 1.0 per cent-2.5 per cent in constant currency (CC) terms (previously: 1.0 per cent-3.5 per cent) due to the ongoing underlying softness in volume and slowdown in discretionary spending; retained its operating margin guidance of 20.0 per cent-22.0 per cent.
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The company still faces growth hurdles in the Communications sector and expects the EURS clients to continue to be conservative with their discretionary spending. The manufacturing sector grew in double-digits in Q2FY24; the company sees opportunities in infra transformation and cost consolidation, which is driving a stronger pipeline, according to analysts KRChoksey Shares and Securities.
According to management, the financial services industry is still experiencing a slowdown in sectors such as mortgages, asset management, investment banking, cards, and payments. The adverse impact of reduced spending by some large clients in Q2FY24 was partially offset by a few large deal wins in cost optimization and vendor consolidation. However, given the shift to the cloud and the growing demand for real-time insights and analytics, management is cautiously optimistic about the medium-term prospects, the brokerage firm had said.
First Published: Dec 26 2023 | 9:53 AM IST