Infosys Sees Strong Q3 Performance Boosting Confidence in Future Growth

Infosys Ltd reported an 11.46% rise in Q3 net profit, driven by increased demand. The firm raised its annual sales forecast and saw a 6.1% growth in BFSI revenue. It added 5,591 employees and plans to hire more. The company emphasizes AI capabilities amid strong large deal wins.

Infosys Ltd, India's second-largest IT services company, reported an impressive 11.46% rise in net profit for the third quarter, driven by a notable increase in demand. This positive outcome prompted the firm to elevate its annual sales forecast for the third time this fiscal year.

The company's profit escalated to Rs 6,806 crore during the October-December period, compared to Rs 6,106 crore in the same timeframe the previous year. Revenue also experienced a 7.6% boost, reaching Rs 41,764 crore. Consequently, Infosys adjusted its full-year revenue growth forecast to a range of 4.5-5% from an earlier projection of 3.75-4.5%.

Infosys CEO Salil Parekh highlighted a shift in discretionary activities in financial services, retail, and consumer products, instilling confidence in the firm's future growth. Despite typical seasonal weaknesses, the BFSI sector achieved a 6.1% growth, fueled by robust demand in the US. The company's focus on enterprise AI, particularly generative AI, has led to significant deal wins and an improved deal pipeline. Infosys shares closed slightly lower on the BSE.

(With inputs from agencies.)