Infosys keeps annual sales growth outlook as Q3 profit beats estimates

India's second-largest software services exporter Infosys has beaten forecasts and maintained its sales growth outlook for the year, citing strong demand from clients in its largest market the United States.

Many analysts had expected the company, which makes more than two-thirds of its sales from the US and Europe, to marginally cut its forecast of 7-9 per cent sales growth for the year ending in March due to currency fluctuations.

Infosys kept the outlook after it posted a higher-than-expected 13 per cent increase in net profit for the quarter ended December 31st on improved demand for outsourcing services.

Shares in Bengaluru-basedInfosys extended their gains to as much as 6.9 per cent after the results, while the main Mumbai market index was up nearly 0.1 per cent.

Infosys has been losing market share and battling high staff attrition rate in the last few quarters as it struggled to compete with more nimble rivals. Chief executive Vishal Sikka was brought in last year to chart a new strategy for a company that was once a trendsetter for India's more than $100 billion IT outsourcing industry, by focusing on innovation and high-margin services including artificial intelligence and automation. The company now says staff attrition has slowed and client numbers increased during the third-quarter.

Infosys, which provides IT services to clients including Apple, Wal-mart Stores and Volkswagen, posted a quarterly profit of 32.50 billion Indian rupees (€439.5 million), up from 28.75 billion rupees in the same year-ago quarter. It also won 59 new clients, helping it boost its revenue in the period by 5.9 per cent to 137.96 billion rupees. – (Reuters)