Infosys raises FY23 revenue guidance

The second-largest IT services provider in the nation, Infosys, missed analysts' projections for net profit and margins but outperformed them in terms of revenue in the first quarter. While keeping the margin guidance at 21-23 percent, the company increased its FY23 revenue guidance to 14-16 percent from the earlier announced 13-15 percent.

During that time, the company's net profit fell by 5.7% to Rs 5,360 crore. On a sequential basis, total revenue increased 6.8% to Rs 34,470 crore. The company's operating margin dropped 1.4 percent sequentially to 20.1 percent. Although there was widespread revenue growth across all business sectors, margins were hurt by supply side issues and higher travel expenses.

Revenues for the company increased by 5.5 percent on a sequential basis in constant currency. The total contract value (TCV) for the IT company for the quarter was $1.7 billion.

“Our strong overall performance in Q1 amidst an uncertain economic environment is a testament to our innate resilience as an organisation, our industry-leading digital capabilities and continued client-relevance as we continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition,” Salil Parekh, CEO and MD, said.

“We are investing in rapid talent expansion while ensuring rewarding careers for our employees, to better serve evolving market opportunities. This has resulted in a strong performance in Q1 and increase in FY23 revenue guidance to 14-16%”, he added.