Bengaluru (India) (AFP) – Indian IT giant Infosys on Wednesday increased the lower end of its annual growth forecast for the current fiscal year after reporting better-than-expected results for the June quarter. The figures indicate a slow revival in client spending at India’s second-largest software services exporter, which has grappled with a slowdown and global economic uncertainty made worse by US President Donald Trump’s tariff disruptions.
While Trump’s tariffs don’t directly affect India’s IT firms, trade tensions hurt companies around the world and make them more hesitant to spend on big tech projects. Infosys, which earns more than 80 percent of its revenue from Western markets, said revenue will grow one to three percent on a constant-currency basis for the current financial year. The company had earlier forecast that revenue for this fiscal year would either stay flat or grow as much as three percent.
The Bengaluru-headquartered firm also reported an 8.6 on-year increase in net profit to hit 69.2 billion rupees ($801 million) for the April-June quarter. Analysts polled by Bloomberg had expected a bottom line of 67.78 billion rupees on average. Revenue rose 7.5 percent year-on-year to 422.8 billion rupees. Chief executive officer Salil Parekh attributed the company’s performance partly to its enterprise AI capabilities.
“Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships,” Parekh added. While the company’s results beat analyst expectations, the broader $283-billion Indian IT sector’s outlook still remains glum, with larger rival TCS reporting disappointing quarterly numbers earlier this month.
© 2024 AFP
