India's IT services companies are betting big on new age tech firms in their search for future growth.Reuters file

Infosys on Friday lowered its revenue guidance for the current financial year (FY2017) after declaring its first quarter results (Q1 FY2017) to 10.5-12 percent from the earlier 11.5-13.5 percent causing its share price to crash on the Bombay Stock Exchange (BSE).

The shares plunged more 9.95 percent to hit an intraday low of Rs. 1,058.30 and was trading at Rs. 1,065.75 at around 11.14 a.m. 

The company posted consolidated net profit of Rs. 3,436 crore ($511 million) on revenues of Rs. 16,782 crore. On a sequential basis, net profit was down 4.5 percent in rupee terms and 4.1 percent in dollar terms. Earnings per share (EPS) stood at Rs. 15.03 ($0.22). 

"Revenues are expected to grow 10.5%-12.0% in constant currency," the company said in its outlook for the financial year.

Here is what the management said after declaring the results:

Vishal Sikka, CEO

We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1.

We continued to see strong momentum in large deal wins in which we are bringing the best of our Renew-New strategy to every deal; and we continued to see growth in our delivery services due to their renewal on the basis of Zero Distance, Design Thinking and automation.

Going forward, we will continue our strong focus on our long-term goals and vision of transforming Infosys where open, intelligent technology amplifies people and frees them to innovate in a culture of learning and collaboration, while bringing operational excellence and cost discipline to every aspect of our business.

U B Pravin Rao, COO

Our client additions and top client growth was strong during the quarter. Automation continues to be a core lever in the renewal of our traditional service offerings.

We are making impactful internal process changes through our simplification initiatives with a focus on better employee experience and improved productivity.

M.D. Ranganath, CFO

Our focus on optimizing cost efficiency levers helped us during the quarter and our cash generation was strong. We navigated a volatile currency environment effectively.