Before the opening bell, India’s second largest software company posted 5% revenue growth guidance number based on customers’ budgets, as opposed to 8-10% estimated in April. The Bangalore based It company reported sales of 9,616 Indian Rupees and a 33% rise in net profit for Q1 ending June 30. Net income increased to $412 million. INFY estimates $7.34 billion in revenue for the 2012 fiscal year.
Infosys, along with other IT companies is battling a lack of demand from businesses as they are less likely to spend more on IT as the global economy is in an economic slump. Gartner Inc., an IT researcher reported that Global IT spending is slowing due to weak Chinese, European and U.S. economies.