India's Infosys raises FY guidance as June-quarter profit beats estimates

BENGALURU: Infosys Ltd beat estimates for June-quarter profit and raised revenue forecast for the fiscal year, as India's No. 2 IT services firm bagged more business from its dominant North American and European markets.

The company and its rivals such as Tata Consultancy Services in the $150 billion Indian software services industry rely heavily on revenue from their clients in the West.

A slowdown in both the US and the European economies due to concerns over events such as Brexit and the trade tussle between Washington and China has hurt margins of Indian software services exporters.

However, Infosys managed to secure $2.7 billion in large deals in the three months ended June 30, which propelled its profit to 38.02 billion rupees ($554.00 million) from 36.12 billion rupees a year ago. Revenue from operations rose nearly 14%.

Analysts on average had expected the Bengaluru-based company to report a net profit of 37.05 billion rupees.

The company also raised its guidance on revenue growth for this fiscal year to between 8.5% and 10% from the 7.5% to 9.5% range it had forecast earlier.

Infosys also saw gross additions of 112 clients during the quarter, compared to 70 a year ago.

Shares in Infosys closed 0.7% higher on Friday in a broader market that ended 0.2% in the red.