MUMBAI, April 14 — Indian software giant Infosys announced a US$1.22 billion share buyback today after reporting a 17-per cent jump in quarterly net profits, boosted by growing demand for its digital services.
The Bangalore-headquartered firm said its net profit climbed to 50.78 billion rupees (US$677 million) in the January to March quarter, up from 43.35 billion rupees a year earlier.
Quarterly revenue at India’s second-largest IT company climbed to 263.11 billion rupees, a 13 per cent increase from a year ago.
“We’ve had an exceptional year and an exceptional quarter,” chief executive Salil Parekh said following the earnings announcement. “Our digital business grew by 34 per cent year-on-year in Q4, now representing 51.5 per cent of our overall revenue.”
“We see continued strong demand from our clients, especially in digital, cloud and data, and we have a strong foundation of large deals,” he added.
India’s software services industry has enjoyed a rebound in recent months, emerging as a rare bright spot for the troubled economy, after coronavirus-led lockdowns last year dampened appetite among Western clients looking to cut spending.
Infosys won new deals worth US$2.1 billion between January and March, while its larger rival TCS secured orders worth a whopping US$9.2 billion during the same period.
Infosys was at the forefront of an outsourcing boom that saw the country become a back office to the world, as Western firms subcontracted work to a skilled English-speaking workforce.
Over 60 per cent of the firm’s revenue comes from North American markets.
Infosys shares fell 2 per cent in Mumbai a day ahead of the earnings. — AFP
