Infosys Q1 net profit rises 5 percent; meets forecasts

MUMBAI (Reuters) - Infosys Ltd, India's second-largest software services exporter, posted a 5 percent rise in quarterly profit, roughly in line with estimates, and retained its full fiscal year sales outlook on large outsourcing deal wins from overseas clients.

The company said its business volume growth, a key barometer for demand, was up 5.4 percent in the June quarter from the previous three months, the most in nearly five years, bolstered by a surge in demand from clients in the United States, its biggest market.

Shares in Infosys rose as much as 9 percent to 1,091 rupees after the earnings, while the broader Mumbai market index was trading up 0.1 percent at 9:48 a.m.

 

The company, which provides IT services to firms like Apple Inc , Volkswagen AG and Wal-mart Stores Inc, , posted 30.30 billion rupees ($475.85 million) in profit in the June quarter up from 28.86 billion rupees a year earlier.

Analysts, on average, were expecting it to post 30.20 billion rupees in net profit, according to Thomson Reuters data.

Revenue in the quarter rose 12.4 percent to 143.54 billion rupees, the company said in a statement on Tuesday, as it added 79 new clients in the period taking the total tally to 987 at the end of June.

Infosys, which is also listed in the United States , retained its 10 percent to 12 percent sales growth outlook, first given in April, for the fiscal year ending in March 2016.

"The organization realignment made earlier this year for deeper client and operational focus has resulted in strong volume growth," Infosys Chief Operating Officer U. B. Pravin Rao said in the statement.

($1 = 63.6750 rupees)

(Reporting by Lehar Maan and Aditya Kondalmahanty; Writing by Nivedita Bhattacharjee and Sumeet Chatterjee; Editing by Stephen Coates and Christopher Cushing)