Infosys CEO Sees 'Huge Opportunity' In India Amid Strong Economic Growth
The Bengaluru-headquartered IT company has clocked "strong growth" in its India business in the first quarter of this fiscal, although revenue from the market is relatively small.
India offers a "huge opportunity" for Infosys, Chief Executive Officer Salil Parekh said, noting that the country's 'fantastic' economic trajectory has set it apart from the rest of the world.
The Bengaluru-headquartered IT company has clocked "strong growth" in its India business in the first quarter of this fiscal, although revenue from the market is relatively small.
"India is a huge opportunity... The growth that we are seeing for different types of work across Indian environment is massive, and we are very much part of making sure that we engage both with private sector companies and with government agencies where we can support, for example, the government's vision on digital India...
So, we are helping build some of the building blocks for that digital India going ahead," Parekh told PTI.
Stating that the company had been deeply engaged with government projects, he said,
"Some of the work we have done on income tax system (tax filing portal developed for Income Tax Department) is extremely well received."
Infosys beat expectations with its first quarter report card this time as it reported 7% rise in consolidated net profit at Rs 6,368 crore and raised its growth outlook for the full financial year.
In the year-ago period, the company had clocked a profit of Rs 5,945 crore.
For the current fiscal, the company raised revenue growth guidance to 3-4% from 1-3% projected earlier.
As of June 2024, India's geography accounted for 3.1% of Infosys' revenue basket -- its contribution rising from 2.7% a year ago and 2.2% in March quarter.
"In India we had, in Q1, very strong growth in India business. It is quite small still but we are looking carefully at which areas we can most contribute in, with the private sector and with government," he said.
Parekh further said India's economic success is fantastic 'very different from what is going on in any other part of the world'.
"In terms of the economy, we have managed inflation very well. So a very strong approach the government has put in to make economy grow nicely," Parekh said.
Earlier this month, the Reserve Bank of India retained the growth and inflation projection at 7.2% and 4.5%, respectively, for the current fiscal amid expectations of a normal monsoon.
According to India's central bank, the real gross domestic product growth for 2024-25 is projected at 7.2%, with first quarter at 7.1%; second quarter at 7.2%; third quarter at 7.3%; and fourth quarter at 7.2%.
