Infosys Boosts Revenue Forecast As Demand Grows

BENGALURU: India’s Infosys Ltd raised its forecast for annual revenue growth on Wednesday and reported higher quarterly profit, helped by big wins, as demand for its digital services increased during COVID pandemic -19.

Biggest rival Tata Consultancy Services reported higher third-quarter profit last week and expects strong growth for the year ahead.

Infosys, the country’s second-largest software services company by market value, said it expects annual revenue for the fiscal year through the end of March 2021 to grow between 4.5% and 5%. % in constant currencies, more than 2% to 3% expected earlier. .

The December quarter is generally weak for India’s IT industry, but it strengthened in 2020 as global customers invested more in digital services to support the shift to remote work due to the coronavirus pandemic.

During the quarter, Infosys entered into several agreements, including a cloud partnership with German automaker Daimler AG and a strategic partnership with British aircraft engine maker Rolls-Royce. The total value of large-scale contracts during the quarter was US $ 7.13 billion.

Consolidated net profit soared to 51.97 billion rupees (709.90 million US dollars) from 44.57 billion rupees a year earlier.

Operating income rose 12.3 percent to 259.27 billion rupees.

Analysts on average expected a profit of 50.50 billion rupees, according to data from Refinitiv.

Infosys smaller rival Wipro on Wednesday reported consolidated net profit of Rs 29.68 billion, compared to Rs 24.56 billion a year earlier.

(1 USD = 73.2070 rupees)

(Reporting by Anuron Kumar Mitra in Bengaluru; additional reporting by Sankalp Phartiyal in New Delhi; Editing by Vinay Dwivedi)