Infosys beats estimates, raises revenue guidance for full year
Infosys on Wednesday beat Street estimates for the quarter ended September 30 and raised revenue guidance for the full year as it benefited from enterprises going digital and from large deal wins.
The country’s second largest IT services firm on Wednesday reported a net profit of Rs 5,421 crore for the period ended September 30, 2021 compared with Rs 4,845 crore in the year ago quarter — a rise of almost 12 per cent. Analysts were expecting the company to report net profits in the region of Rs 5,200 crore.
With the second quarter continuing with the strong trend seen at the beginning of the fiscal, Infosys raised the constant currency guidance for the full year to 16.5-17.5 per cent from 14-16 per cent earlier. However, the company retained the margin guidance at 22-24 per cent.
During the quarter, Infosys reported a 20.5 per cent growth in revenues at Rs 29,602 crore against Rs 24,570 crore in the same period of the previous year. In constant currency terms, it showed an increase of 19.4 per cent over the preceding year. The company added that revenues from digital offerings such as cloud showed a rise of 42.4 per cent and it now accounts for 56.1 per cent of the total revenues.
Speaking to reporters from its headquarters in Bangalore, Salil Parekh, MD & CEO of Infosys, said the company has upped its revenue guidance as it expects a strong growth ahead.
“We feel that the deal pipeline looks strong today and that has given us the confidence, in addition to what we have done in the past, to increase the guidance,’’ he said.
While the company saw large deal signings of $2.15 billion in the July-September period compared with $2.6 billion in the preceding three months, Parekh was of the view that this trend is unlikely to go away soon. Citing a good pipeline ahead, he added that this is more evident in digital transformation areas like cloud which are witnessing a good traction.
Parekh also disclosed that after being with the company for 35 years, Pravin Rao, chief operating officer will retire. “This will be the last full quarter before Pravin retires,’’ he said, while adding that Infosys will announce a new structure before he steps down.
The quarter saw most of the verticals reporting a solid performance. While financial services saw a growth of 21.8 per cent in revenues, it stood at 18.8 per cent in the case of retail and 44 per cent in manufacturing. Geographies like North America, Europe, rest of the world and India also posted higher growth during the period.