Infosys, a company based in India, has a strong quarter and raises its revenue forecast.
After announcing quarterly earnings that exceeded analyst expectations, Indian software behemoth Infosys said it expected to grow faster than originally forecasted.
In the three months ended September 30, the company reported revenues of 296 billion rupees ($3.9 billion), up 20.5 percent from the same period last year.
“Our year-over-year growth was the fastest in 11 years,” Salil Parekh, chief executive officer and managing director, said in a press conference.
“As a result of this strong performance, we’ve raised our revenue growth target to 16.5 to 17.5 percent.”
Digital services revenue increased 43 percent year over year, accounting for more than 56 percent of overall revenue, up from 54 percent the prior quarter.
Revenues from the firm’s heritage consulting and technology sector, on the other hand, climbed only 0.7 percent in the same three-month period.
The net profit of India’s second-largest IT company increased by 11.9 percent to 54.21 billion rupees in the first quarter of this year, compared to the same period last year.
Despite absorbing the impact of pay hikes, the company maintained its operating margins at 23.6 percent, compared to 23.7 percent in the previous quarter.
Infosys, on the other hand, kept its operating margin target for the current financial year 2021-22 at 22-24 percent.
In the most recent quarter, the corporation signed deals for $2.15 billion, down from $2.6 billion in the prior quarter ending June 30.
Even as its attrition rate — a crucial statistic for IT companies — jumped to 20.1 percent from 13.9 percent in the previous quarter, Infosys said it will expand its graduate hiring program to 45,000 candidates this year to satisfy rising demand for digital services.
As demand for digital services rises during the coronavirus pandemic, software companies in India are finding it difficult to hire and retain expertise.
The board declared a 15 rupee per share interim dividend for shareholders.
Infosys was at the vanguard of an outsourcing boom that saw India transform into the world’s back office, with Western companies subcontracting work to a capable English-speaking workforce.
North American markets account for more than 60% of company revenue.
In Mumbai, shares of the business finished more than 1% higher ahead of the results report.