MUMBAI, Jan 11 — India’s second-largest software exporter Infosys reported today a 30 per cent fall in quarterly profits amid seasonal weakness in the IT sector and mounting expenses.
The Bangalore-headquartered company also announced board approval for the buyback of shares worth 82.60 billion rupees (US$1.184 billion) and raised its revenue forecast for the current financial year.
“We had another strong quarter in our digital business with 33.1 per cent growth and large deals at US$1.57 billion which gives us confidence entering 2019,” chief executive Salil Parekh said in a statement.
Net profit in the three months to December 31 came in at 36.10 billion rupees (US$511.94 million), below the 51.29 billion rupees in the same period a year earlier.
Infosys however raised its forecast for earnings growth from 8.0 per cent to 8.5-9.0 per cent in dollar terms for the current fiscal year.
India’s US$150 billion IT sector has long been one of its flagship industries but is facing upheaval in the face of automation, a failure to keep up with new technologies and visa restrictions.
Infosys’ rival and India’s largest IT services exporter Tata Consultancy Services yesterday reported a 24.1 per cent rise in net profit for the quarter ending in December. — AFP
Source: The Malay Mail Online