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Infosys retains revenue growth guidance after 10 percent profit jump

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Reuters
Last Updated : Oct 16 2018 | 4:55 PM IST

(Reuters) - India's second-largest software services exporter Infosys posted better than expected second-quarter profit on Tuesday, helped by a rise in big deals, and reiterated its forecast for full-year revenue growth.

Having lifted its number of $100 million-plus clients to 23, compared with 19 in the same quarter last year, Infosys retained guidance for full-year revenue growth of 6-8 percent in constant currency terms, in line with broker expectations.

"Large deal wins at over $2 billion during the quarter demonstrate our increased client relevance and also give us better growth visibility for the near term," said CEO Salil Parekh.

The Bengaluru-headquartered company added 7,834 employees on a net basis, compared with a reduction in the same period last year.

Profit rose 10.3 percent to 41.10 billion rupees ($558.04 million) in the quarter to Sept. 30, beating analyst estimates of 40.51 billion rupees, according to I/B/E/S data from Refinitiv.

Bigger rival Tata Consultancy services posted a record net profit last week and forecast double-digit revenue growth this financial year, driven by strong demand for digital services and healthy spending by key clients.

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Shares in Infosys ended 0.5 percent down ahead of the results in a broader Mumbai market up 0.7 percent.

($1 = 73.6500 Indian rupees)

(Reporting by Krishna V Kurup and Tanvi Mehta in Bengaluru; Editing by David Goodman)

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First Published: Oct 16 2018 | 4:48 PM IST

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