Infosys Ltd on Wednesday raised its annual revenue growth forecast, after the country’s second largest software services firm posted a better-than-expected quarterly profit, buoyed by growth in client demand for its digital services during the pandemic.
The company, co-founded by billionaire NR Narayana Murthy, revised its annual revenue forecast to between 2 per cent and 3 per cent in constant currency terms, from an earlier expectation of revenue being flat to up 2 per cent.
Bengaluru-based Infosys, which provides services such as cloud, data and analytics to companies across the world, said it will also roll out salary increases, promotions across all levels effective January 1.
“Infosys results today … signifies how important it has become for enterprises to invest in IT to weather any disruptive situation – be it pandemic or an economic recession,” Forrester analyst Ashutosh Sharma said.
Infosys reported quarterly operating margin of 25.4 per cent, up from 21.7 per cent last year, following rivals Tata Consultancy Services that posted a 2.2 per cent rise in operating margin to 26.2 per cent while Wipro Ltd saw its margin rise to 19.2 per cent for the period.
Consolidated net profit for Infosys in the September quarter climbed 26.6 per cent to Rs 4,845 crore. Analysts on average had expected a profit of Rs 4,519 crore, according to Refinitiv data.
The company’s upbeat profit this quarter comes in contrast to peers TCS and Wipro, which saw their profit drop 7.1 per cent and 3.4 per cent, respectively.
Revenue for Infosys, which counts chocolate maker Hershey Co and networking gear maker Cisco among its clients, climbed to Rs 24,570 crore from Rs 22,629 crore in the quarter. This compares with analysts’ estimate of Rs 24,191 crore.
During the quarter, Infosys had a gross addition of 96 clients, in line with 96 client additions last year.