Infosys revenue jumps 21% to $3.7 bn driven by digital biz in Q1

Information technology service provider Infosys reported 21.2 percent increase in revenue to $3.782 billion in the first quarter of fiscal 2021-22.
Infosys for technology outsourcingInfosys said digital revenues represented 53.9 percent of total revenues, achieving growth of 42.1 percent.

Infosys achieved operating margin of 23.7 percent, increase of 1.0 percent year-on-year and decline of 0.8 percent quarter-on-quarter.

Infosys said large deal flows remained strong with TCV of $2.6 billion in Q1.

“We grew at the fastest pace in Q1 in a decade, at 16.9 percent year-on-year and 4.8 percent quarter-on-quarter in constant currency. This gives us confidence to increase our revenue growth guidance to 14 percent-16 percent,” said Infosys CEO Salil Parekh.

Infosys’s revenue represented 33 percent of total revenues from Financial services, 15 percent from Retail, 12.2 percent from Communication, 12.1 percent from Energy, Utilities, Resources & Services, 9.7 percent from Manufacturing, 8.3 percent from Hi-Tech, and 6.8 percent from Life Sciences.

Infosys total employees base touched 2,67,953 in June 2021 as compared with 2,59,619 in March 2021 and 2,39,233 in June 2020.

Infosys said the number of software professionals reached 2,53,493 in June 2021 as compared with 2,45,037 in March 2021 and 2,25,167 in June 2020.

Infosys raised its annual revenue forecast on Wednesday, as India’s second-largest IT services company wins more contracts from global businesses expanding their digital offerings during the COVID-19 pandemic, Reuters reported.

The company signed several large contracts in the quarter in fields such as cloud, data and analytics, Chief Executive Officer Salil Parekh said in a news conference.

Infosys said it expects revenue growth of 14 percent to 16 percent for the financial year to March 2022, compared with the 12 percent to 14 percent growth predicted in April.

The Bengaluru-based firm also maintained its margin forecast for fiscal 2022 at 22 percent to 24 percent.