New Delhi, April 23 -- Infosys Ltd beat analysts' expectations as it grew at its fastest pace in three years in the last fiscal year, even as it flagged the potential impact of artificial intelligence technologies. The advance of artificial intelligence (AI) may squeeze revenue in the current fiscal year, India's second-largest information technology (IT) services company said, much like peers which have noted client-specific challenges and the rise of automation tools.

The Bengaluru-headquartered company reported $20.16 billion in revenue, up 4.57% from a year earlier. A third of its incremental revenue came from manufacturing, a sector which brings a fifth of its business.

For the company, macroeconomic conditions remained mostly unch...