BENGALURU, July 23 (Reuters) – Infosys reported lower-than-expected quarterly revenue on Thursday as clients held back spending amid disruption from artificial intelligence, and named insider Ashiss Kumar Dash as CEO designate, set to take over in April 2027.
Current CEO Salil Parekh’s term ends in March next year. Dash, who will lead Infosys for the next 5 years, is the head of its energy vertical and has been with the company for more than three decades, Infosys said.
The Bengaluru-based company also cut the upper end of its revenue growth forecast to 3% from an earlier 3.5% forecast.
Brokerages had expected a revenue growth estimate of 2.5%-4.5% for the year.
Revenue for the three months ended June rose 14% to 482.11 billion rupees ($4.99 billion), missing analysts’ estimates of 483.67 billion rupees, according to data compiled by LSEG.
Peers Tata Consultancy Services and HCLTech reported better-than-expected quarterly results earlier due to a strong show from financial services clients and a weak currency.
Net profit at Infosys rose 12.2% to 77.69 billion rupees, falling below 78.32 billion rupees expected by analysts, as per LSEG-compiled data.
AI services accounted for 8.2% of Infosys’ revenue currently compared with 5.5% in the December quarter.
Large order bookings, or deals over $30 million, stood at $3.6 billion during the quarter, compared with $3.2 billion in the previous quarter and $3.8 billion in the year-ago period.
The company bagged deals from Sterling Bank of Asia, semiconductor maker GlobalFoundries , Malaysia-based hospital chain IHH Healthcare.
Infosys’ Mumbai-listed shares closed 0.45% lower ahead of the results.
($1 = 96.5725 Indian rupees)
(Reporting by Sai Ishwarbharath B; Editing by Nivedita Bhattacharjee)
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