India's leading software services provider, Infosys is likely to slash its revenue forecast next month as US business clients defer spending and cringe at signing big deals.
The company, which has missed its own revenue guidance in three of the past four quarters, has struggled as its big customers trimmed costs and has been criticized for sticking with a rigid pricing policy when competitors have offered more flexible plans.
With over 60% of its business in the United States, the company is mainly exposed to swings in US corporate sentiment and has been hit hard by spending deferrals. Further, longer-than-expected client shutdowns due to Hurricane Sandy and looming fiscal cliff are also hurting its guidance for the year.
The company is likely to update its outlook for the fiscal year ending in March when it reports quarterly results on January 11. A forecast cut would be the second this fiscal year. In July, Infosys divided its dollar revenue growth estimate from as much as 10% - forecast in April - to 5%.
Company Name | CMP |
---|---|
TCS | 3880.35 |
Infosys | 1420.75 |
HCL Tech. | 1333.55 |
Wipro | 458.10 |
Tech Mahindra | 1276.00 |
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