We are approaching the corporate earnings season, and Infosys is expected to kick-start the same on Thursday, April 13. One of the top information technology firms in India, Infosys, is expected to post single digit growth for the financial year FY2017-18 after almost posting 8.7% revenue growth and 4.9% profit growth on TTM basis up to December 2016.
The reasons for continuing with a single digit growth are H1B visa restrictions by Trump, and company’s business transition to digital and cloud. The bottlenecks in growth would be the pricing pressure, delay in revenue contribution from newly transited business, and more employee expenses from domestic hiring. To add to it, the complaint of governance lapse on the back of M&A and payment to employees for early termination of contracts, act as a catastrophe.
Thereby Infosys revised its 2016-17 guidance at 8.4-8.8% after three prior revisions. The guidance for FY18 came in at 9% in the wake of poor business in second half of last year, in addition to rupee appreciation and H1B visa restrictions.