At the same time, however, the Tata Group firm lagged Infosys as it posted 2 percent revenue growth in constant currency, 3.1 percent in dollar revenue and 10 percent fall in bottomline.
Infosys raised dollar revenue guidance to 7.1-9.1 per cent for the year, against its April forecast of 6.1-8.1 per cent. Markets cheered Infosys earnings with the stock rising over 2 per cent as compared to flat broader market.
Massive changes that their largest clients themselves are facing in the age of cloud computing, automation and artificial intelligence - for instance, the big churn among U.S. retailers - are also contributing to the uncertainty over how tech spending will pan out in the IT sector's biggest market for the rest of the year.
Abiding by his ideology of automation and its impact on the development of the country, Infosys CEO Vishal Sikka arrived in a driverless automated golf cart at the company headquarters in Bengaluru ahead of a press conference on the company's Q1 results. "We successfully navigated yet another quarter of significant currency volatility through our hedging".
Sikka is a former SAP SE top executive, with a Stanford University computer science PhD in artificial intelligence. In the March quarter, Infosys had reported a net profit of Rs 3,603 crore on revenues of Rs 17,120 crore. This is also reflected in the pressure on prices on commoditised traditional services such as maintaining aging applications.
In a regulatory filing on the BSE, the IT major said consolidated revenue for the quarter under review (Q1) was flat (1.8 percent) YoY at Rs 17,078 crore as against Rs 16,782 crore in the like period year ago and subdued (0.2 per cent) sequentially from Rs 17,120 crore quarter ago in rupee terms. The new, high-growth services aren't yet big enough to bring in substantial profits. He also added that Infosys is trying to turn its focus on innovation-led growth and the same will be accelerated in the coming quarters. Prior to its quarterly report, it had pegged its own outlook at 6.1 to 8.1 per cent. Infosys has added eight clients in its $100 million category.