India’s Infosys beats profit estimates as client spending rises

AFP | New Delhi

The Daily Tribune - www.newsofbahrain.com

Indian IT giant Infosys raised its annual revenue guidance yesterday after reporting a 7.1 percent on-year rise in net profit for the June quarter, signalling a gradual revival in client spending.

Infosys is India’s second largest software services exporter and earns more than 80 percent of its revenue from Western markets. The company earned $761.3 million (63.68 billion rupees) in net profit for the quarter, beating expert estimates, while onyear revenue was up 3.6 percent to $4.7 billion.

Infosys bumped constant-currency revenue guidance for the current financial year to 3-4 percent, up from an earlier forecast of 1-3 percent. “All geographies and most industry groups grew sequentially,” chief executive Salil Parekh told reporters. “Volume growth turned positive after several quarters.

We had another strong quarter of large deal wins, with 34 large deals at a total contract value of $4.1 billion.” Parekh added that Infosys was seeing “early signs of improvement” for its financial services arm in the United States. Part of India’s $254-billion IT sector, Infosys saw a pandemic-fuelled demand boom followed by a quick slowdown in growth when inflation and global uncertainty prompted Western customers to cut back on tech spending.