BENGALURU: Infosys raised the floor of its revenue forecast for the current fiscal year on Thursday after reporting stronger-than-expected results for the July-September quarter.
Infosys is India's second-largest software services exporter and earns more than 80 percent of its revenue from Western markets.
However, it has struggled with a demand slowdown over the past 18 months, as well as global uncertainty made worse by US President Donald Trump's chaotic trade policies.
Trump's global tariff blitz doesn't directly hurt India's $283 billion outsourcing sector, but trade tensions hurt companies around the world and make them more reluctant to spend on big tech projects.
The IT industry's outlook has also darkened after Trump imposed a new $100,000 fee on H-1B visas that experts say will force Indian firms to hire more from the United States, hurting margins as a result.
However, Infosys's second-quarter figures released on Thursday hint at a slow revival in client spending.
'We had robust all-round performance'
The Bengaluru-headquartered firm said revenue would likely grow two to three percent on a constant-currency basis for the current financial year.
It had earlier forecast revenue would grow one to three percent this fiscal year.
The company also reported a 13.19 percent on-year increase in net profit to 73.6 billion rupees ($837.7 million) for the July-September quarter. Analysts polled by Bloomberg had expected 72.24 billion rupees on average.
Revenue rose 8.5 percent year-on-year to 444.9 billion rupees, beating expectations of 439.29 billion rupees.
"We had robust all-round performance in Q2 - strong growth, resilient margins, very high cash generation," chief financial officer Jayesh Sanghrajka said in a statement.
Sanghrajka said Infosys continues to make strategic investments to "futureproof the business" amid "high uncertainty".
Shares in Infosys ended 0.2 percent lower at the close of trading in Mumbai on Thursday before the earnings announcement.
