Infosys ups annual sales forecast on demand recovery
Friday, 19 July 2024
BENGALURU, July 18 (Reuters): Infosys topped quarterly results estimates on Thursday on a recovery in demand from clients in its mainstay financial services business, prompting India's second-largest IT services firm to raise its revenue forecast for the financial year.
US-listed shares of the Bengaluru-based company rose 5 per cent.
Infosys joined industry leader Tata Consultancy Services and smaller rival HCLTech in reporting a strong quarter, raising hopes for the $254 billion sector which has been struggling with sluggish demand post a pandemic-induced boom.
"There is a recovery at play after five to six quarters of depressed spending," Investec analyst Nitin Padmanabhan told Reuters.
Infosys sees revenue growth of 3 per cent-4 per cent in the fiscal year 2025, up from its prior view of 1 per cent-3 per cent.
Consolidated revenue in the first quarter rose 3.6 per cent to 393.15 billion rupees ($4.70 billion), beating the analysts' average estimate of 389.15 billion rupees, as per LSEG data.
Its banking and financial services posted a revenue rise of 0.3 per cent after falling for four straight quarters.
IT clients had cut their spending on non-essential projects in recent quarters amid economic uncertainty and higher interest rates.