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India’s Infosys Lifts Forecast As Digital Shift Fuels IT Demand

India’s Infosys posted a 12% jump in quarterly profit and bumped up its revenue forecast on strong demand for its software services from businesses accelerating their digital transformation


Infosys is seeking thousands of new hires amid a talent shortage across the IT sector in India.
Infosys saw its brand value surge 52% to $12.8 billion to secure third place, Brand Finance said. Photo: Reuters.

 

India’s Infosys Ltd on Wednesday bumped up its annual revenue forecast and posted a near 12% jump in quarterly profit, riding on strong demand for its software services from businesses accelerating their digital transformation due to the pandemic.

The country’s second-largest IT services firm by revenue said it expects revenue growth of 19.5%-20% on a constant currency basis for the financial year to March, compared with the 16.5%-17.5% growth predicted in October.

“We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations,” chief executive officer Salil Parekh said in a statement.

India’s $194-billion IT industry has been a big beneficiary from the pandemic spurring global companies to bolster investments in services ranging from cloud-computing and digital payment infrastructure to cyber-security.

 

Profit Climbs

Earlier on Wednesday, crosstown rival Wipro reported a 30% rise in revenue for the December quarter and a near flat net profit, while the country’s largest IT services firm, Tata Consultancy Services, is set to announce results later in the day.

Bengaluru-based Infosys’ consolidated net profit climbed to 58.09 billion Indian rupees ($786.06 million) in the December quarter, from 51.97 billion rupees a year earlier.

Revenue rose to 318.67 billion rupees, with the banking, financial services and insurance unit, which accounts for over a third of the total, posting a 16.85% growth in the quarter.

 

• Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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