India’s No.2 IT services firm, Infosys, beat quarterly revenue estimates on Thursday, helped by a recovery in demand from clients in its financial services and manufacturing verticals.
Consolidated revenue in the first quarter rose 3.6% to ₹39,315 crore ($4.70 billion), beating analysts’ average estimate of ₹38,915 crore, as per LSEG data.
The company also raised its revenue growth forecast for the financial year 2025 to 3%-4%, from its prior view of 1%-3%.
Most analysts, expecting the Bengaluru-based company to stick to its previous revenue forecast, look at top-line numbers as a gauge of demand for IT services.
Infosys’s results, which came after upbeat results from bigger rival Tata Consultancy Services and HCLTech, raised hopes for the $254 billion sector, which has been struggling with sluggish demand post-a pandemic-induced boom.
IT clients had cut their spending on non-essential projects amid economic uncertainty and higher interest rates in recent quarters. Analysts expect that to change after the US Federal Reserve cuts interest rates and that country’s election outcome is out.
Net profit at Infosys rose 7.1% to ₹6,368 crore in the quarter ended June, beating analysts’ average estimate of ₹6,253 crore, as per LSEG data.