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Infosys lifts revenue outlook as net jumps 23% on ‘digital’ deals

Tech major Infosys raised its revenue growth guidance for FY22 to 14-16% from 12-14% forecast in April, and posted a jump in net profit as more clients signed digital transformation deals.

For the quarter ended June, Infosys registered a 22.7% rise in net profit to ₹5,195 crore. Revenue rose 18% to ₹27,896 crore.

‘Landmark quarter’

“It has been a landmark first quarter for us,” said CEO and MD Salil Parekh. “We have seen the fastest growth in digital transformation. We grew at the fastest pace in Q1 in a decade in constant-currency terms. This gives us confidence to increase our revenue growth guidance to 14-16%.” The quarter brought contracts worth $2.6 billion to the company’s deal kitty compared with $1.74 billion a year earlier. Digital revenue grew 42.1% in constant currency. “We signed 22 large deals in the first quarter, of which 9 were in the BFSI vertical while the remaining came from retail, manufacturing and other segments,” said COO Pravin Rao.

On the issue of glitches in the income tax portal, he said Infosys had been working ‘extremely hard’ and had been ‘successful in solving several issues’.

Infosys said it would hire 35,000 fresh graduates globally in FY22. It has already recruited 10,000 freshers while the rest would be onboarded in the next couple of quarters, said Mr. Rao.

Voluntary attrition rose 300 basis points sequentially to 13.9%. “As the demand for digital talent explodes, rising attrition in the industry poses a near-term challenge. We plan to meet this demand by expanding our hiring programme of [freshers],” Mr. Rao added.


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Printable version | Sep 17, 2021 8:46:08 PM | https://www.thehindu.com/business/infosys-lifts-revenue-outlook-as-net-jumps-23-on-digital-deals/article35330974.ece

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