Infosys, Wipro Earnings Soared on Demand for Digital
File photo of Infosys logo.
Information technology (IT) services major Infosys and software services company Wipro reported soaring quarterly results on Wednesday mainly because of the increase in demand for digital services caused due to the pandemic.
Contrary to the earnings the share prices of both the companies were trading in negative in the early trade on Thursday. Infosys was trading at 1,342.70, down by 44.45 points or 3.20 percent at 10:21 am. Similarly, Wipro was at 443.50 down by 15.50 points or 3.38 percent.
Infosys posted 16.6 percent growth in its net profit-making it stands at Rs 5,197 for the December quarter on Wednesday. The Bengaluru-headquartered company also witnessed an increase of 12.27 percent in its revenue standing at Rs 25,927 on YoY basis. Whereas on QoQ basis it was up by 5.52 percent.
The company further said that its digital revenues grew at 31.3 percent from a year ago in constant currency to USD 1.76 billion contributing more than 50 percent to the total revenue.
The company also announced a definitive agreement to purchase assets and onboard employees of Carter Digital, one of Australia’s leading experience design agencies and said that this asset takeover will strengthen Infosys’ global design and experience offerings, demonstrates its continued commitment in bringing innovative thinking, talent and creativity to its clients, and provide effective global digital solutions.
Commenting on the results, Salil Parekh, CEO and MD Infosys said that the execution of client relevant strategy focused on digital transformation has continued to bring superior growth to the company.
Meanwhile, Wipro, in its December quarter, reported a profit of Rs 2,966.70 crore.
The company also reported a dollar revenue growth of 3.9 percent at USD 2,071 million compared to 3.7 percent QoQ. The firm has witnessed highest dollar revenue growth in 36 quarters.
Also interim dividend of Rs 1 per equity share of par value Rs 2 each to the members of the company as of January 25, 2021, being the record date was announced and the payment of the interim dividend will be made on or before February 2, 2021.
Commenting on the company's performance, Thierry Delaporte, CEO and Managing Director said that the demand environment is steadily improving, especially for digital transformation, digital operations and cloud services.