* 2nd revenue growth target cut in 3 months
* Cites "near-term uncertain business outlook"
* Infosys warned of post-Brexit business 'softness' in Aug
* Peer TCS also warned clients delaying spending
* Q2 net profit up 6.1 pct to 36.06 bln rupees
(Adds CEO, analyst comment, more details)
By Sankalp Phartiyal and Anya George Tharakan
MUMBAI/BENGALURU, Oct 14 Infosys Ltd
cut its annual revenue growth target for the second time in
three months as India's software service exporters feel the
pinch of major Western clients holding back on spending as they
wait to see how November's U.S. presidential election and
Europe's Brexit drama play out.
While it reported second-quarter net profit grew 6.1
percent, the second-largest player in India's $150 billion-plus
software services outsourcing industry said on Friday it now
expects revenue to grow between 8 percent and 9 percent in
constant currency terms in the fiscal year through March 2017.
The lowered outlook initially startled investors, sending
shares more than 5 percent lower before they pared losses.
Infosys had cut its guidance as recently as July, to 10.5-12
percent growth, warning in August it was seeing some "softness"
after Britain voted to leave the European Union in June.
Firms like Infosys and industry leader Tata Consultancy
Services Ltd (TCS) depend on North America and Europe
for the majority of their revenue. TCS on Thursday reported
lower-than-expected revenue growth and warned clients were
"During the course of Q2 we have seen signs of cautious
client behaviour," Infosys Chief Executive Vishal Sikka said on
a conference call. Royal Bank of Scotland's decision to
shelve a plan to list a new bank in Britain, for which Infosys
was a technology partner, also contributed to the lowering of
revenue guidance, Sikka said.
At 0921 GMT, the firm's shares were trading 1.9 percent
lower. Investors took the view that a sector that is a showpiece
of the Indian economy is still well placed in the longer term.
"We don't believe that the structural story of outsourcing
has changed," said Nilesh Shetty, a fund manager at Quantum
Asset Management Company Pvt Ltd. "The engineering talent in
India is still priced a lot lower than the developed world."
For its fiscal second quarter ended September, Infosys said
consolidated net profit rose to 36.06 billion rupees ($542
million) under Ind AS accounting standards, ahead of analysts'
estimates of 35.26 billion rupees.
Revenue rose 10.7 percent to 173.1 billion rupees.
The company added 78 clients during the three months to
September, taking its total number of active clients to 1,136.
($1 = 66.5919 Indian rupees)
(Additional reporting by Promit Mukherjee and Devidutta
Tripathy in Mumbai, Laharee Chatterjee in Bengaluru; Editing by