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Regular-article-logo Sunday, 21 December 2025

Infosys flourishes under Sikka

Revenue growth to be robust

Our Special Correspondent Published 16.04.16, 12:00 AM

Mumbai, April 15: Infosys, India's second-largest IT services company, has forecast strong revenue growth and reported its third successive estimate-beating earnings on new client wins, solidifying a recovery that began a year ago under its new chief executive.

Infosys said it expects revenue to grow between 11.5 per cent and 13.5 per cent in constant currency terms in the current year - indicating a faster growth rate than the industry average as the company shifts to the high-margin digital services business.

In dollar terms, the company expects revenues to grow between 11.8 per cent and 13.8 per cent.

Industry body Nasscom had forecast in February a 10-12 per cent growth for IT and software services exports in the current financial year.

Infosys's strong growth outlook comes less than two years after chief executive Vishal Sikka took the reins to turn around a company that was losing share to rivals.

Under Sikka, Infosys has made bets on automation and other high-margin digital services. In February, the company extended his term by another two years to 2021.

The company added 89 clients in the last quarter, including five large clients who pay more than $50 million annually, Infosys said.

"The momentum of large deal wins continued this quarter and bookings were strong," chief operating officer U.B. Pravin Rao said.

Sikka has set a goal to raise the company's revenue to $20 billion by 2020, which he reiterated on Friday. It posted sales of $9.5 billion for 2015-16.

"If we execute on that set of opportunities we would have not only achieved our 2020 goals, we would have ended up creating a completely new kind of IT services firm," he said.

"Infosys results reflect how well the organisation has adhered to its committed strategy for regaining market leadership, avoiding any strategy - execution gaps that we have seen in some of its peers," Sanjoy Sen of Aston Business School, UK said.

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