India's Infosys beats Q2 profit estimates, sets $1.13 billion share buyback
FILE PHOTO: An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012. REUTERS/Vivek Prakash/File Photo
BENGALURU -India's Infosys Ltd on Thursday reported a bigger-than-expected increase in second-quarter profit, boosted by strong demand, and raised its full-year revenue growth forecast.
The country's second-largest IT services company by revenue also approved a share buyback worth 93 billion Indian rupees ($1.13 billion).
Infosys said it now expects revenue growth of 15 per cent-16 per cent for the financial year to March, higher than the 14 per cent-16 per cent increase it forecast in July.
The company trimmed its operating margins guidance for the year to 21 per cent-22 per cent, from the forecast of 21 per cent-23 per cent it gave in July.
Infosys's raised forecast is in contrast to its rivals, who have issued cautious outlooks so far due to the challenging macro-environment and fears of an economic meltdown in their major markets of the U.S. and Europe.
Earlier this week, larger rival, Tata Consultancy Services Ltd said clients are taking longer to decide on bigger deals, while smaller rival Wipro gave a weak outlook for the current quarter.
Infosys's consolidated net profit rose 11 per cent to 60.21 billion rupees year-over-year in the quarter ended Sept. 30, beating analysts' average estimate of 57.82 billion rupees, according to Refinitiv data.
The company's revenue from operations jumped 23.4 per cent to 365.38 billion rupees. ($1 = 82.3450 Indian rupees)
