Infosys has suspended guidance; it  speaks volumes on covid-19  impact

As long as we can remember, Infosys Ltd has provided guidance either on annual revenue or revenue growth in constant currency terms. It has suspended this practice temporarily citing uncertainty over the impact of covid-19 and the related lockdowns across the world.

This is quite the opposite of what Tata Consultancy Services Ltd (TCS) did late last week. While TCS has never provided guidance, its post-results commentary suggested revenue will decline sharply in the June quarter in a range similar to that during the global financial crisis. It added that its internal models assume a recovery in the second half of the year, with revenue and profitability being flat year-on-year by the March 2021 quarter. Investors were enthused about this clarity of vision, and TCS shares have rallied 6% since its results announcement.