close
BENGALURU: Salil Parekh, CEO and Managing Director of Infosys (left), speaks as Chief Financial Officer of Infosys Jayesh Sanghrajka looks on during a press conference held to announce the company's third quarter results in Bengaluru on January 16, 2025. - AFP
BENGALURU: Salil Parekh, CEO and Managing Director of Infosys (left), speaks as Chief Financial Officer of Infosys Jayesh Sanghrajka looks on during a press conference held to announce the company's third quarter results in Bengaluru on January 16, 2025. - AFP

India's IT giant Infosys hikes revenue forecast as demand slowly recovers

BENGALURU: Indian tech giant Infosys hiked its annual sale forecast Thursday and posted an 11.4 percent on-year rise in profit for the December quarter, signaling a gradual revival in client spending. India's second-largest software services exporter earns more than 80 percent of its revenue from Western markets.


It raised its constant-currency revenue guidance for the current financial year to 4.5-5.0 percent, up from an earlier forecast of 3.75-4.5 percent. Net profit rose 11.4 percent year-on-year to 68.06 billion rupees ($785.9 million) for the December quarter, beating analyst estimates of 67.7 billion rupees on average.


Revenue was up 7.6 percent to 417.64 billion rupees for the same period, helped by strong demand from its European market and growth in its financial services, manufacturing and energy markets.


"We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction," Infosys CEO Salil Parekh said. "This has led to another quarter of strong, large deal wins", he added.


Part of India's $254-billion IT sector, Infosys grappled with a growth slowdown over the last year as customers curtailed tech spending due to high inflation and global geopolitical uncertainty. But the Bengaluru-headquartered firm has seen demand slowly pick up as inflation cooled off, sparking interest rate cuts and boosting the willingness of clients to spend on technology.


The slowdown hurt the job prospects of thousands of young Indian engineering graduates who depend on the industry, although in recent quarters some firms including Infosys have resumed adding employees to their headcount.


Infosys's headcount increased by 5,591 employees in the December quarter, when compared to the September quarter, according to the company's quarterly filings. Shares in Infosys ended 1.09 percent lower at the close of trading in Mumbai on Thursday ahead of the earnings announcement. – AFP

By Farah AlHashem The ceasefire agreement between the Zionist entity and Hamas, brokered in January 2025, marks a pivotal moment in the ongoing conflict that has shaped the Zionist entity’s future. Following the Oct 7 attacks, known as the “Al-A...
There is no doubt that Gulf leaders are striving hard to unite the region. This great effort is due to the belief in the unity of Gulf nations and also to create a model for others. All Gulf institutions need to seek ways to remove any obstacle to G...
MORE STORIES