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Infosys sees stronger annual revenue growth on digital business gains

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Reuters MUMBAI
Last Updated : Apr 15 2016 | 10:57 AM IST

MUMBAI (Reuters) - India's second-largest IT services firm Infosys forecast strong revenue growth and reported its third successive estimate-beating earnings on new client wins, solidifying a recovery that began a year ago.

The Bengaluru-headquartered company said it expects revenue to grow between 11.5 percent and 13.5 percent in constant currency terms in the current year - indicating a faster growth rate than the industry average as the company shifts to high-margin digital services business.

In rupee terms, the company expects revenue to grow between 12.7 percent and 14.7 percent, Infosys said.

Industry body Nasscom in February had forecast a 10-12 percent growth for IT and software services exports in the current financial year.

Infosys, which trails Tata Consultancy Services in terms of revenue, reported a 16 percent rise in fourth-quarter net profit.

Consolidated net profit rose to 35.97 billion rupees ($540.07 million) in its fiscal fourth quarter to March 31, from 30.97 billion rupees a year earlier.

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Analysts on average had expected a net profit of 35.56 billion rupees, according to data compiled by Thomson Reuters.

The Bengaluru-headquartered company, which counts Apple Inc, Volkswagen AG and Wal-mart Stores Inc among its clients, said revenue rose 23.4 percent to 165.5 billion rupees.

($1 = 66.6027 rupees)

(Reporting by Himank Sharma; Editing by Muralikumar Anantharaman)

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First Published: Apr 15 2016 | 10:39 AM IST

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