Infosys warns of tough times ahead

IT service firm Infosys reported a slight growth in profit for the first quarter due to currency gains, but warned of challenging times ahead.

The Indian outsourcing firm saw net income rise by 1.6 per cent year on year to US$313m for the period, with revenue dropping 2.9 per cent to US$1.1bn.

For the current quarter, Infosys also warned of a fall in revenue of 7.1 to 8.7 per cent, which corresponds to between US$1,110m and US$1,130m.

“We believe that in the short term the global economic environment will continue to be challenging,” said Infosys chief executive and managing director S Gopalakrishnan.

“We are working closely with our clients to help them navigate the downturn. We continue to invest in the future to take advantage of the growth opportunities in the medium to long term.”