Infosys has raised full-year growth guidance— the stock market was a step ahead of it
- Infosys quarterly growth in dollar terms was muted at 1%.
- CEO Salil Parekh feels this ‘underscores’ the company’s digital transformation.
- Year-on-year, revenue from digital has grown by 40.8% while Infosys’ core verticals report a negative growth of 5%.
Infosys’ earnings for the third quarter posted a 23% increase in profit and xx% growth in revenue in rupee terms. However, the quarterly revenue growth was 1% in dollar terms without accounting for exchange rate changes.
More importantly, the software exporter increased its full-year guidance for revenue growth to 10% to 10.5%. "Q3 results further underscore that we remain steadfast in our journey of sustained client relevance and deepening engagement with them, as they partner with us in navigating their next in the digital transformation era," said Infosys CEO and MD Salil Parekh.
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However, the stock market was a step ahead. The share price of Infosys jumped 2% on Friday even before the new guidance was announced, narrowing the week’s losses to just 2.49%.
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Yearly revenue from digital business grew by 40.8% whereas Infosys’ core verticals slowed down reporting negative year-on-year growth of 5%.
“Large deal wins continue to be robust with a growth of 56% so far this year. We had a further reduction in attrition, demonstrating the results of our continued efforts towards strengthening employee engagement and value proposition,” said Pravin Rao, Infosys COO, during the earnings call.
Revenue growth
| 1%
|
Full-year guidance
| 10-10.5%
|
Deal wins
| $1.8 billion
|
Digital services growth
| 40.8%
|
Net profit growth
| $627 million
|
Addressing the whistleblower allegations, Parekh said, “Our leadership has worked exceptionally well… Fortunately, that’s shows in the results that we have.”
See also:
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