Is Infosys going through a rough patch right now? Net profit, revenue disappoint beyond sub-par expectations

The quarterly net profit and sales for Infosys fell short of market estimates, making for a disappointing end to the fiscal year. 

The 3.2% quarterly decline in CC terms in the company's revenue was below market forecasts of sustained growth.

The margins, which stood at 21%, were also being squeezed. 

Management had anticipated a growth in revenue of 16-17%, so the actual growth of 15.4% was below their expectations.

Cancellation of several projects, delay in scaling up other transactions, and the difficult environment in the United States all had an effect on the IT giant's income.

 The profits fell short of our projections. Management expects a 4%-7% increase in constant currency revenues for FY24, with an EBIT margin of 20-22%. 

Both sets of projections "are below our and the street expectation and indicate challenging FY24," said Mitul Shah, Reliance Securities.

 The $4,554 million in revenue was down 2% from the previous quarter and 3.5% lower than the $4,718 million forecast by Reliance Securities.

Revenue in constant currency declined 3.2% sequentially, below the brokerage's forecast of 0.4% rise.