Infosys cuts growth due to Brexit

infosysudacityIndia’s software services exporter Infosys slashed its fiscal-year revenue growth target for the second time in three months over fears that Brexit had hurt its bottom line.

While the outfit reported a 6.1 percent rise in second quarter net profit, Infosys said it now expected revenue to grow between eight percent and nine percent in constant currency terms in the fiscal year to March 31, 2017. Its previous revenue growth target, issued in July, was 10.5-12 percent, which it had already lowered from the 13.5 percent it expected in April.

The outfit depends on North America and Europe for the majority of its revenue. It is worried that hte impending US presidential election and the implications of Britain’s ‘Brexit’ move have caused many clients to delay or abandon outsourcing plans.

Infosys had warned in August it was seeing some “softness” in business after the June Brexit vote in Britain.

Chief Executive Vishal Sikka said in a statement on Friday the revision took into consideration “our performance in first half of the year and the near-term uncertain business outlook”.

The company is still not doing that badly and its reduced numbers are still ahead of analysts’ estimates. Still it is a little ironic that the outfit which is supposed to have been “coming over here and taking our jobs” is also suffering as a result of Brexit.