Indias second largest software exporter, Infosys (INFY), said first-quarter profit climbed 16% from the same time last year, but shares still fell Tuesday on its disappointing outlook.

The Mumbai-based provider of global consulting services warned that spending by U.S. and European clients on technology contracts may remain weak, though it kept its second-quarter revenue view unchanged in the range of $1.73 billion to $1.76 billion.

We have re-organized the company to be more industry domain focused which will accelerate innovation and make us more responsive to clients needs said Infosys CEO S. Gopalakrishnan. We believe that Infosys is well positioned to be a transformational partner for large clients even as they navigate through uncertain times.

Infosys booked first-quarter profit of INR17.22 billion, or $384 million, compared with INR14.88 billion a year ago. Revenue for the three months ended June 30 was INR74.85 billion, or $1.67 billion, up 21% from INR61.98 billion.

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