Infosys Ltd.'s revenue rose in the first quarter on deal wins and increased client spending on digital services, prompting the company to raise its growth guidance for the full fiscal even as fears of a recession intensifies.
The software services exporter's revenue increased 7% sequentially to Rs 34,470 crore in the three months through June, according to its exchange filing. That compares with the Rs 34,008.50-crore consensus estimates of analysts tracked by Bloomberg.
Infosys raised its revenue growth guidance for 2022-23 to 14-16% from 13-15% projected earlier. It maintained its operating margin forecast at 21-23% with margin to be close to lower end of the range.
Infosys Highlights Q1 FY23 (QoQ)
Revenue in U.S. dollar terms rose 3.8% to $4,444 million.
Revenue growth in constant currency terms stood at 5.5%.
Net profit fell 5.7% to Rs 5,360 crore, against the Rs 5,671.4-crore forecast.
Operating profit fell 0.6% at Rs 6,914 crore.
EBIT margin stood at 20% against 21.5% in Q4.
Business Environment
The IT company's growth remained broad-based. Deal momentum, too, was robust in Q1, with digital transformation rapidly scaling across verticals and regions.
Infosys won deals worth $1.7 billion in the April-June 2022 quarter compared with $2.3 billion in the previous three months.
Wage inflation, however, impacted margin by 160 basis points, sub-contracting impacted margin by 30 bps, currency benefit was 30 bps and employee utilisation was 40 bps, it said.
Segment-Wise Revenue
All key business segments of Infosys, including BFSI, saw growth over the preceding three months. Energy and manufacturing saw the biggest jump in revenue, followed by retail.
Shares of Infosys closed 1.75% lower on Friday, compared with a 0.7% gain in the benchmark Nifty 50.
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