Infosys raises FY23 revenue forecast on strong deal wins

Firm says it signed 32 large deals in Q3 for a total of $3.3 bn, the highest in 2 years

- Nishant Maher & Shouvik Das

Infosys Ltd unexpectedly raised its annual revenue forecast on strong deal wins and beat analysts' quarterly profit estimates, brushing aside concerns that its business will be affected by the global economic slowdown.

India's second-largest software services firm raised its FY23 revenue growth forecast to 16-16.5% on Thursday from 15-16% predicted in October, defying expectations of no change, and maintained its operating margin guidance of 21-22%.

Net profit rose 13.4% for the December quarter to ₹6,586 crore from ₹5,809 crore in the year earlier. On average, analysts estimated a profit of ₹6,465 crore, according to Bloomberg. Sales rose 20% to ₹38,318 crore.

Infosys said it signed 32 large deals, a 30.4% increase from a year earlier, for a total of $3.3 billion, the highest in two years.

"The overall deal wins of $3.3 billion during this quarter is extremely strong, and the outlook for Infosys remains robust amid the present scenario of uncertainty across the world in terms of tech spending," said Omkar Tanksale, an analyst at Axis Securities.