The $194 billion IT services sector saw a big pandemic winner, but signs of a slowdown in the large contracts that have fueled industry growth are emerging.
As a result of the COVID-19 pandemic, global corporations have expanded their digital offerings, which has increased demand for Infosys Ltd’s software services.
The country’s second-largest IT services firm forecasted revenue growth of 16.5 to 17.5 percent in the fiscal year ending March 2024, up from 14-16 percent in July. Its annual margin forecast of 22 percent to 24 percent remained unchanged.
In pre-market trading on the New York Stock Exchange, shares of the Bengaluru-based company rose 7.4 percent to $23.50.
The $194 billion IT services sector saw a big pandemic winner, but signs of a slowdown in the large contracts that have fueled industry growth are emerging.
According to Infosys, large deal signings fell to $2.15 billion in the third quarter that ended on September 30 from $2.6 billion in the previous quarter and $3.15 billion a year ago.
Last week, Tata Consultancy Services’ quarterly earnings showed signs of moderation in large deals.
Infosys reported a net profit of 54.21 billion rupees ($719.48 million) in the quarter ended March 31, beating the average estimate of 52.74 billion rupees made by Refinitiv analysts polled.
During the quarter, revenue from operations increased by 20.5 percent to 296.02 billion rupees.
Wipro Ltd, a smaller competitor, increased its net profit for the September quarter by 18.9 percent to 29.31 billion rupees.
