Infosys Defies Expectations with Strong Q3 Performance
Revenue Soars 7.6% to $4.83 Billion
India’s second-largest IT services provider, Infosys, has reported a stellar third-quarter performance, exceeding market expectations. The company’s revenue surged 7.6% to 417.64 billion rupees ($4.83 billion) in the October-December period, outpacing the average analysts’ estimate of 412.78 billion rupees.
Banking and Financial Services Drive Growth
The banking, financial services, and insurance (BFSI) segment, which accounts for nearly a third of Infosys’ revenue, witnessed a 6.1% revenue growth in the quarter. This uptick was largely driven by increased demand in the United States, where major banks have indicated a rise in IT spending despite ongoing cost-cutting efforts.
Tech Spending Rebounds Across Industries
In addition to BFSI, all eight of Infosys’ business verticals posted growth, signaling a broader recovery in tech spending. This trend is consistent with the commentary from peers Tata Consultancy Services and HCLTech, which have also noted early signs of discretionary spending picking up and an improvement in the demand environment.
Net Profit Jumps 11.4% to $790 Million
Infosys’ total net profit rose 11.4% to 68.06 billion rupees in the quarter, surpassing the 67.29 billion rupees expected by analysts. This strong performance is particularly notable given the seasonally weak nature of the December quarter for India’s $254-billion IT industry.
Large Order Bookings Remain Robust
The company’s large order bookings, or deals over $30 million, stood at $2.5 billion during the quarter, compared to $2.4 billion in the previous quarter and $3.2 billion in the year-ago period. This suggests that Infosys continues to win significant contracts and maintain a healthy pipeline of business.
Full-Year Revenue Forecast Raised
Buoyed by its strong Q3 performance, Infosys has raised its full-year revenue growth forecast to 4.5%-5% from 3.75%-4.5% earlier. This upward revision reflects the company’s confidence in its ability to capitalize on the growing demand for IT services.
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