On Wednesday, Infosys Ltd. informed that its third-quarter net profit jumped 16.6% to ₹5,197 crore. This was due to large deal wins and meeting demand for empowering digital transformation. Apart from this, the buoyant stance also prompted the country’s second-largest information technology services provider to increase its revenue leadership for the financial year ending in March for the second straight quarter. Talking about its smaller competitor Wipro Ltd., its third-quarter profit climbed 20.8% to ₹2,968 crore. This was encouraged by the robust successive IT services revenue growth in 36 quarters — of 3.9%. According to Thierry Delaporte, CEO of the company, it was ‘bullish’ on revenue growth.
He further added that the demand environment was gradually improving, more so for digital transformation, digital operations, and cloud services. According to Infosys, it expects revenue to grow by 4.5-5% in the financial year ending March 2021. This would be faster than the 2-3% pace it had anticipated previously. Apart from this, the company elevated its operating margin guidance from 23-24% to 24-24.5%.
India’s IT firms have gained from a worldwide trend to add digital offerings and leverage cloud capabilities. This is the because the pandemic has made businesses across sectors fathom the strategic need to strengthen remote services both for internal work and for customers. As per Infosys, its overall contract value for large deals in the quarter reached an all-time high of $7.13 billion. Among the numerous deals it got were a cloud partnership with German automaker Daimler AG and a tactical coalition with British aero-engine maker Rolls-Royce.