Demand for outsourcing services boosts Infosys Q1 profits
Software services exporter Infosys has matched expectations with a 33 per cent rise in its fiscal first-quarter profit, bolstered by a surge in demand for outsourcing services and a fall in the rupee.
India's $100bn-a-year IT and back-office outsourcing sector earns about three-quarters of its revenues from customers in the United States and Europe.
Net profit for Infosys, whose customers include Bank of America, BT Group and GlaxoSmithKline, rose to 22.89bn rupees in the quarter ended June from 17.2bn rupees a year earlier.
Analysts had forecast a net profit of 23 billion rupees for the Bangalore-based company, according to Thomson Reuters data.
Infosys and its domestic rivals Tata Consultancy Services and Wipro are part of the country's export-driven outsourcing sector that has benefited from increase in demand for outsourcing to cut costs and boost efficiency.
But prevailing global economic uncertainty, cutthroat competition for a bigger share of the outsourcing business and sharp currency fluctuations have slowed the sector's pace of growth.