Performance and future visibility around orders encouraged Infosys to raise its revenue guidance for the full year to 14-16%, up from 12-14% it had just three months ago. on company’s ADR New York Stock Exchange (NYSE) were up 2% in morning trading. but the effect on its shares on BSE Will see on Thursday. On a dollar basis, the company’s revenue grew 21.2% to $3.8 billion. Net profit increased 26.2% to $704 million.
“This is the first quarter with strong YoY growth of 16.9% and a sequential 4.8% in constant currency terms. This is the fastest growth in ten years. We continue to gain significant market share, this growth is essentially in the area of organic and digital transformation in particular. Strong momentum in the quarter, deal wins and a healthy pipeline give us the confidence to increase our revenue guidance. Salil Parekh said.
IT companies in general are seeing a smart recovery from the pandemic, due to their customers’ desire for digital transformation through the cloud and a greater focus on data and analytics. Infosys’ digital deals, which have been at the center of sustained growth over the past few quarters, grew 42% to $2 billion in the first quarter. The company signed 22 major deals worth $2.6 billion, of which 14 are in North America and five in Europe.
The financial services business was up 22.6%, retail 22.2% and manufacturing 18.5%. Nine out of 22 large deals were in the BFSI sector, indicating that growth in the bread and butter sector is returning to normal.
Operating margin rose 100 basis points to 23.7% over last year, but fell 80 basis points sequentially as the company spent more on increasing compensation, acquiring new talent and retaining older ones as the IT sector In the war for talent heated up.
“We are confident of delivering margin guidance based on our comprehensive cost optimization program, despite cost escalation arising largely from the compensation review, talent acquisition and retention,” said Chief Financial Officer Nilanjan Roy.
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