India's second largest IT firm Infosys has recorded a profit growth of 5% in the first quarter of the current fiscal year, showing signs of revival under its chief executive Vishal Sikka.
The company posted a profit of ₹ 3,030 crore in the April-June quarter compared to the same a year ago. Infosys's revenues went up by 12.4% to ₹ 14,354 crore in the quarter.
Following the upbeat quarterly results, share prices of software gaint rose sharply by about 10% to trade at ₹ 1101.00 on the Bombay Stock Exchange (BSE).
"The organization realignment made earlier this year for deeper client and operational focus has resulted in strong volume growth," Infosys Chief Operating Officer UB Pravin Rao said in a statement.
In addition, the sequential revenue growth of 4.5% during the June quarter in dollar terms was the highest in the past 15 quarters. On a quarterly basis, the volume growth of 5.4% during the quarter was also at its highest level not seen in the previous 19 quarters.
The Bengaluru-based company also maintained its growth forecast of 10% to 12% in constant currency terms for the fiscal year ending March 2016.
Analysts said that the company is making a progress due to various strategies initiated by its newly-appointed CEO Sikka.
"This is definitely a good performance after a long wait. It appears that after Dr Sikka's appointment, the focus on high-growth areas is clear and they have made right deployments," Sandip Agarwal of Edelweiss told CNBC-TV18.
During April-June period, the company added 79 new clients taking the total client number to 987.