BENGALURU, INDIA – On Wednesday, software services behemoth Infosys Ltd raised its annual revenue projection and reported a jump in quarterly earnings after winning more contracts from global companies looking to extend their digital offerings during the epidemic. As firms increase investments in services ranging from cloud computing to digital payment infrastructure, Infosys and rivals Tata Consultancy Services Ltd and Wipro Ltd have benefited from increased demand for outsourcers.
On a conference call, Infosys Chief Executive Officer Salil Parekh said there is a healthy pipeline of agreements, including work in the cloud, data, and analytics domains.
The company, which is India’s second-largest IT services firm by market value, said it expected revenue growth of 14 percent to 16 percent for the fiscal year ending in March 2022, up from 12 percent to 14 percent anticipated in April.
Infosys, based in Bengaluru, also kept its margin target for fiscal 2022 at 22 percent to 24 percent.
The first quarter ended June 30 saw significant deal activity, with total contract value jumping to US$2.6 billion from US$1.74 billion a year earlier.
Operational revenue increased 17.9% to a new high of 278.96 billion rupees, boosted by a 47% increase in the digital sector, which accounted for more over half of total income.
According to Refinitiv IBES data, consolidated net profit increased 22.7 percent year on year to 51.95 billion rupees, but fell short of analysts’ average forecast of 53.34 billion rupees.
TCS, a larger competitor, posted a 29 percent increase in quarterly earnings last week and predicted double-digit revenue growth for the year.
(Editing by Anshuman Daga, Sriraj Kalluvila, and Aditya Soni; reporting by Nallur Sethuraman in Bengaluru and Sankalp Phartiyal in New Delhi)/n
