Infosys sales edge past consensus as it nudges up outlook

By Steve Goldstein

Indian outsourcing giant Infosys reported growing profits as it forecast a slight pickup in sales growth for the year.

Infosys said its fiscal first-quarter ending June 30 profit rose 5% to $763 million, or 18 cents a share, as revenue grew 2% to $4.71 billion.

Analysts polled by FactSet expected earnings of 18 cents a share on sales of $4.66 billion.

Infosys said its free cash flow rose 56.5% to $1.09 billion, its highest ever, and it reported 34 of what it calls large deal wins.

"With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients," said CEO Salil Parekh in a statement.

For the year, Infosys is forecasting revenue growth at constant currencies between 3% and 4%, versus the 2.5% growth by that metric in the first quarter, on an operating margin between 20% and 22%, versus the 21.1% it saw in the first quarter.

Infosys previously forecast 1% to 3% sales growth at constant currencies. Analysts polled by Visible Alpha have been expecting 2.9% sales growth at constant currencies.

Infosys's U.S.-listed shares (INFY) (IN:500209) rose 8% in early New York trade. The stock has gained 12% this year.

-Steve Goldstein

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07-18-24 1017ET

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