Global site navigation

Local editions

India's Infosys beats profit estimates as client spending rises
Economy

India's Infosys beats profit estimates as client spending rises

by  AFP 2 min read
Infosys chief executive Salil Parekh reported a 7.1 percent on-year rise in net profit for the June quarter
Infosys chief executive Salil Parekh reported a 7.1 percent on-year rise in net profit for the June quarter. Photo: Idrees MOHAMMED / AFP
Source: AFP

PAY ATTENTION: Follow our WhatsApp channel to never miss out on the news that matters to you!

Indian IT giant Infosys raised its annual revenue guidance Thursday 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 on-year 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."

Read also

Taiwan's TSMC second-quarter net profit jumps on Gen AI demand

PAY ATTENTION: Did you know? We have fun quizzes! Explore our new quiz section!

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.

The slump has hurt the job prospects of thousands of young Indian engineering graduates who depend on the sector, historically one of the country's biggest white-collar employers.

Infosys, which has over 300,000 employees, upset markets last year after temporarily halting campus hiring in light of reduced client demand.

The company's total headcount also dropped by nearly 26,000 in the 12 months to March 31.

Despite its upbeat assessment of returning client demand, Infosys still ended the June quarter with nearly 2,000 fewer employees.

Read also

IMF maintains 2024 global growth forecast, warns of inflation risk

Shares in Infosys ended 1.85 percent higher at the close of trading in Mumbai on Thursday ahead of the earnings announcement.

PAY ATTENTION: Stay Informed and follow us on Google News!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: