Infosys on Thursday announced better-than expected revenue growth for the December quarter, posting upbeat results for the third consecutive quarter.
The Bengaluru-based IT major witnessed a 0.6% increase in revenue to $2,407 million in the October-December quarter in the current fiscal year.
Analysts had expected the revenues of top IT firms to come under pressure in the current quarter due to weak seasonal demand as Christmas and New Year holidays usually result in less business volumes from the key markets -- the US and Europe. Both the markets contribute to nearly 85% of the revenues of IT firms in the country.
"The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter." said U B Pravin Rao, President & COO.
Tata Consultancy Services (TCS), India's largest IT firm, posted a 14.19% rise in its net profit to Rs 6,083 crore for the third quarter, but its revenue growth failed to meet analysts' expectations for the sixth consecutive quarter.
In rupee terms, Infosys reported 6.6% growth in net profit to Rs.3 465 crore, while its revenue went up by 15.3% to Rs 15, 902 crore on annual basis.
At the same time, the company raised its annual revenue guidance to 12.8%-13.2% for 2015-16 compared to the earlier estimate of 8.9-9.3% in constant currency terms.
"We are starting to see creative confidence blossoming within Infosys - David Kelley's beautiful idea that innovation is not specific to one department but is an ability within all of us, waiting to unleash our full creative potential. We are seeing Infoscions becoming innovators, bringing innovation and client value to each individual project. This confidence can only come from a culture of learning and empowerment, and this is the kind of company we are endeavoring to create," said Infosys CEO Vishal Sikka.
Post results, Infosys shares traded over 4% higher at Rs 1,127 on the Bombay Stock Exchange (BSE) on Thursday despite a sharp fall in the benchmark indices.