India’s Infosys reports 3.7 per cent profit rise, misses estimates
Net profit in the three months to June 30 came in at 36.12 billion rupees ($527.49 million)
MUMBAI: Infosys on Friday reported a 3.7 per cent rise in quarterly profits, well below expectations for the Indian software giant.
Net profit in the three months to June 30 came in at 36.12 billion rupees ($527.49 million), marginally above the 34.83 billion rupees it reported in the same period last year.
A Bloomberg survey of analysts had forecast the Bengaluru-based company to report net profit at $546 million.
Infosys said its profits were impacted by ongoing negotiations over the sale of its Israeli software firm Panaya.
India’s second-largest software services exporter maintained its annual earnings outlook at 6 to 8 per cent in US dollar terms for the fiscal year 2019, and reported robust growth in its financial services segment.
Infosys shares had risen more than 1 per cent earlier in the day, buoyed by optimistic forecasts after its rival Tata Consultancy Services reported a 24 per cent rise in profits earlier this week.
India’s $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 reported a 12 per cent rise in revenue for the quarter-ended June to 191.28 billion rupees from 170.78 billion rupees reported for the same period last year.
