Bengaluru-based Infosys raised its annual revenue growth forecast
Infosys, the country’s second-largest IT company, on Wednesday reported a 14 percent rise in net profit to Rs 4,845 crore in the July-September period compared to the previous quarter, beating analyst estimates. In an after-hours regulatory filing, TI’s senior said its revenue increased 3.82% sequentially to Rs 24,570 crore in the quarter ended Sept. 30. Growth in customer demand for its digital services during the coronavirus crisis boosted the company’s profitability.
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Analysts, on average, expected the company’s earnings to be Rs 4,519 crore on revenue of Rs 24,191 crore, Reuters news agency reported citing data from Refinitiv.
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The company’s optimistic earnings this quarter are in contrast to its peers TCS and Wipro, which saw their earnings fall 7.1% and 3.4%, respectively.
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Revenue from its financial services segment grew 5.55 percent to Rs 7,871 crore, and retail trade rose 7.67 percent to Rs 3,651 crore, Infosys said.
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Bengaluru-based Infosys raised its forecast for annual revenue growth. The company, co-founded by billionaire NR Narayana Murthy, revised its forecast for annual revenue to 2-3 percent in constant currency terms, from a previous expectation of 0-2 percent.
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“The increase in revenue and margin prospects for fiscal year 21 is due to the continued confidence that customers have in us. I am extremely proud of our team for achieving these results in challenging business conditions globally, “said Salil Parekh, CEO and CEO of Infosys.
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Infosys said it will implement salary increases and promotions at all levels beginning January 1.
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Infosys reported a quarterly operating margin of 25.4 percent, up from 21.7 percent last year, following rivals Tata Consultancy Services that posted a 2.2 percent increase in operating margin to 26.2. percent. Wipro saw a marginal increase to 19.2 percent during the period.
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The company’s board of directors announced an interim dividend of Rs 12 per share and set November 11 as the payment date.
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During the quarter, Infosys had a gross onboard of 96 customers, in line with 96 customer additions last year.
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The software company said its voluntary abandonment of IT services dropped to 7.8 percent, from 18.3 percent in the prior year period.
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