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.
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