BENGALURU (Reuters) -India’s No.2 IT services firm Infosys (NS:INFY) beat quarterly revenue estimates on Thursday, helped by a recovery in demand from clients in its financial services and manufacturing verticals.
Consolidated revenue in the first quarter rose 3.6% to 393.15 billion rupees ($4.70 billion), beating analysts’ average estimate of 389.15 billion rupees, as per LSEG data.
The company also raised its revenue growth forecast for the financial year 2025 to 3%-4%, from its prior view of 1%-3%.
Most analysts, who were expecting the Bengaluru-based company to stick to its previous revenue forecast, look at top line numbers as a gauge of demand for IT services.
Infosys results, which came after upbeat results from bigger rival Tata Consultancy Services (NS:TCS), as well as HCLTech , raised hopes for the $254 billion sector that has been struggling with sluggish demand post a pandemic-induced boom.
IT clients had cut their spending on non-essential projects in recent quarters amid economic uncertainty and higher interest rates. Analysts expect that to change after the US Federal Reserve cuts interest rates and that country’s election outcome is out.
Net profit at Infosys rose 7.1% to 63.68 billion rupees in the quarter ended June, beating analysts’ average estimate of 62.53 billion rupees, as per LSEG data.
Source:reuters