Infosys Raises Growth Guidance, Buoyed by Strong Deal Pipeline

Q1 profit up 8.7% at ₹6,921 crore; revenue increases 7.5%

- AVIK DAS

The net profit of information-technology (IT) services firm Infosys in April-June rose 8.7 per cent year-on-year (Y-o-Y) to ₹6,921 crore, helped by an interest income of ₹327 crore and net tax provisions of ₹101 crore for previous assessment years reversing. Sequentially net profit was down 1.6 per cent.

Revenue was up 7.5 per cent to ₹42,279 crore, supported by strong deal wins in financial services and manufacturing businesses even in a subdued macroeconomic environment. Revenue was up 3.3 per cent on quarter-on-quarter.

Both the numbers beat Bloomberg estimates, where analysts had estimated a net profit of ₹6,778 crore and revenue of ₹41,724 crore.

Backed by large deals worth $3.8 billion, India's second-largest software-services provider raised the lower end of its guidance to 1 per cent from nil growth it had guided a quarter earlier. At the top end, it still expects to grow 3 per cent on constant currency for the full year.