MUMBAI, India (AP) — Profit at India's Infosys Technologies rose 4.9 percent in dollar terms for the September quarter, the company said Friday, missing expectations amid tepid demand from global clients struggling with economic uncertainty.
Net income for the September quarter was $431 million. Revenue grew 2.9 percent from a year ago, to $1.78 billion.
The numbers were below expectations. Analysts surveyed by FactSet had forecast net income of $444.6 million on sales of $1.86 billion.
The outsourcing bellwether said revenue for the year ending in March will likely grow 5 percent in dollar terms to at least $7.34 billion. Adjusting for currency fluctuations, its revenue growth forecast is about 0.3 percentage point lower than its July projection.
The news sent the stock down as much as 8.5 percent in an otherwise flat market in Mumbai.
"We have had a decent quarter in a very tough time," chief executive S.D. Shibulal told India's CNBC-TV18.
He said Infosys had to trim prices by about 0.2 percent from the prior quarter as clients cut back on discretionary spending and froze decision making.
"The environment is quite challenging for our clients," he said. "The growth is not there."
Infosys has struggled to maintain growth as it positions itself as a premium player in a highly competitive business. It has been warning investors since January that the global economic slowdown and chaos in Europe would hit earnings.
Still, it managed to grow revenue from Europe by 4.7 percent over the June quarter and from North America by 2.2 percent over the June quarter.