Thanks to a rebound in demand from customers in its financial services and industrial verticals, Infosys, the second-ranked IT services company in India, exceeded quarterly revenue projections on Thursday.

According to LSEG statistics, consolidated sales increased 3.6% to 393.15 billion rupees ($4.70 billion) in the first quarter, above analysts’ average expectation of 389.15 billion rupees.

Additionally, the business increased its previous estimate of 1%–3% sales growth to 3%–4% for the fiscal year 2025.

The majority of analysts use top line figures as a barometer of demand for IT services, and they were counting on the Bengaluru-based business to maintain its prior revenue projection.

The positive results from Infosys, which followed those of its larger rival Tata Consultancy Services and HCLTech, gave the $254 billion industry, which has been experiencing slow demand following a pandemic-induced surge, cause for optimism.

In response to rising interest rates and economic uncertainties, IT clients have recently reduced their expenditure on non-essential initiatives. Once the US Federal Reserve lowers interest rates and the results of that nation’s election are known, analysts anticipate things to alter.

According to LSEG statistics, Infosys’ net profit for the quarter ended in June increased 7.1% to 63.68 billion rupees, above analysts’ average forecast of 62.53 billion rupees.

(Adapted from Business_Standard.com)