April 12, 2019 / 10:56 AM / 7 months ago

India's Infosys fourth-quarter profit jumps on deal wins

FILE PHOTO: The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren

(Reuters) - Infosys Ltd, India’s second biggest software services exporter, reported a 10.4 percent rise in its fourth-quarter profit on Friday, helped by strong growth in its key financial services segment and large deal wins during the period.

Net profit here for the three months to end of March was 40.74 billion Indian rupees ($588.6 million), compared with 36.90 billion rupees in the year-earlier period. The result was above the average estimate of 39.56 billion rupees by 33 analysts, Refinitiv Eikon data showed.

Infosys expects its full-year revenue to rise by 7.5 to 9.5 percent on constant currency basis, while operating margin is expected to be in a 21-23 percent range.

The company, which said it won large deals worth over $1.5 billion in the quarter, has reported an expansion in revenue for 37 straight quarters. Revenue from operations grew 19.1 percent, while revenue from its largest segment, financial services, spiked 15.6 percent.

India’s $180 billion IT industry as a whole is benefiting from moves by traditional businesses to transform their legacy systems to compete effectively against more nimble start-ups globally.

Digital revenue jumped 41.1 percent to $1.04 billion, which accounted for 33.8 percent of total revenue, Infosys said.

Rival Tata Consultancy Services reported here its best ever quarterly profit for the quarter ending March on Friday, driven by strong performance from its banking, financial services and insurance segment.

Reporting By Arnab Paul, Krishna V Kurup and Chandini Monappa in Bengaluru; Editing by David Evans and Mike Harrison

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