E-Paper
Infosys logs Q1 profit at ₹5,195 crore, raises revenue forecast for FY22
India’s second-largest software services company now expects revenue to rise 14-16% in constant-currency terms from the 12-14% it forecast three months ago.
Infosys Ltd on Wednesday raised its annual revenue forecast on Wednesday as clients continued to spend heavily to digitize their processes to save costs and reach new customers, spurred by the pandemic.
India’s second-largest software services company now expects revenue to rise 14-16% in constant-currency terms from the 12-14% it forecast three months ago.
The widespread disruptions caused by the pandemic have forced companies to accelerate their digital transformation. Changes in behaviour that would have taken years to unfold have happened within months. Some of these new habits picked up during the pandemic, such as online shopping and remote working, are likely to be sticky, forcing companies to adapt quickly.
The upgrade in sales forecast followed robust fiscal first-quarter earnings. Profit rose 22.7% in the three months ended June 30 to ₹5,195 crore from a year ago. Revenue grew 16.9% in constant currency to ₹27,896 crore. That compares with Bloomberg earnings and revenue estimates of ₹5,358.8 crore and ₹27,634.5 crore, respectively.
“This is the fastest growth we have seen in 10 years. We continue to gain significant market share, which is essentially organic growth, especially in the area of digital transformation. This is a clear reflection of Infosys’s resilience and client relevance,” said Salil Parekh, chief executive and managing director of Infosys.
