Infosys disappoints with sales forecast

Infosys has lowered its guidance as it reports its first quarter results.

IT consulting firm, Infosys, has recorded US$1752 million in revenue in the first quarter of its 2013 financial year.

That's a 4.8 per cent growth, year-on-year. However the company has also lowered its guidance for the 2013 fiscal year, from the 8 to 10 per cent growth in revenue it had been expecting to just 5 per cent, to reach US$7.343 billion. The company's shares took a hit after the announcement, sinking up to 10 per cent.

Net income after tax was up 8.3 per cent, to US$416 million. Infosys also hired 1157 staff and added 51 clients in the first quarter. The IT consulting firm's headcount, as of 30 June, was 151,151.

The IT firm has put a lot of faith in Infosys 3.0, the business transformation roadmap the company introduced early last year. It wants to move from being a technology provider to a business solutions provider.

"Our focus on Infosys 3.0 and building tomorrow's enterprise, coupled with disciplined execution will help us deliver high quality growth, despite challenges seen in the global economic situation, resulting in slower IT spends by large corporations," Infosys CEO SD Shibulal said in a statement.