On Thursday, Infosys, a leading Indian IT firm, enhanced its revenue forecast for the fiscal year after surpassing expectations in its July-September quarter results.
As India’s second-largest software exporter, Infosys earns more than 80% of its revenue from Western markets.
Despite this, the company has faced a slowdown in demand over the last 18 months, compounded by global uncertainties and the disruptive trade policies of US President Donald Trump.
While Trump’s global tariffs don’t directly impact India’s $283 billion outsourcing industry, they increase global trade tensions, making companies hesitant to invest in large tech projects.
The IT sector’s outlook has also dimmed with Trump’s new $100,000 fee on H-1B visas, pushing Indian firms to hire more in the US, which could affect profit margins.
However, Infosys’s latest quarterly results indicate a gradual recovery in client spending.
The Bengaluru-based company announced that its revenue is expected to grow between two to three percent in constant currency this fiscal year.
Previously, the forecast was a one to three percent growth for the year.
The firm reported a 13.19% increase in net profit to Rs73.6 billion ($837.7 million) for the July-September quarter, surpassing Bloomberg analysts’ average prediction of Rs72.24 billion.
Revenue climbed 8.5% year-on-year to Rs444.9 billion, exceeding the expected Rs439.29 billion.
“We achieved a robust performance in Q2 with strong growth, stable margins, and significant cash generation,” stated chief financial officer Jayesh Sanghrajka.
Sanghrajka added that Infosys is making strategic investments to “future-proof the business” amid “high uncertainty”.
Infosys shares closed 0.2% lower in Mumbai on Thursday before releasing its earnings report.
