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India's second largest IT company Infosys Ltd on Wednesday raised its annual revenue forecast and posted a near 12% jump in quarterly profit, riding on strong demand for its software services from businesses accelerating their digital transformation due to the pandemic.

Its consolidated net profit for the third quarter rose to 5,809 crore for December 2021 quarter from 5,197 crore a year ago, while its revenue grew nearly 23% to 31,867 crore in the quarter ended December 2021 from 25,927 crore year-on-year (YoY)

“Infosys reported better than expected quarterly earnings beating all street expectations. The company hiked growth guidance for FY22 and its constant currency (CC) growth also rose from 6.3% to 7% against 3.5% street expectation and net profit growth performed better than street expectations when compared to same quarter last year," said Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd.

Infosys said growth remained broad-based during the quarter and deal momentum robust, with digital transformation rapidly scaling across verticals and regions. It has raised its FY22 revenue growth outlook to 19.5-20%, compared with the 16.5%-17.5% growth predicted in October.

Meanwhile, Large deal signings for the third quarter accelerated with TCV of $2.53 billion, a near 18% rise from the previous quarter ended September.

“We expect stock would react positively up from today closing of 1,876/- and we are overall optimistic on the stock with medium to long term horizon with a technical target above 2,000 mark in 6-12 months period," Tapse added.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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