Bengaluru: Infosys and Wipro have the second quarter of the star, sending their stock prices in the morning trade in the New York Stock Exchange (NYSE) soaring.
Infosys income rose 20.7% to $ 3.9 billion.
In a constant currency (which disciplines the impact of cross-currency fluctuations), its growth is 19.4%, the fastest in 11 years.
Wipro grew by 29.5%, to $ 2.6 billion.
In a constant currency, it was 28.8%.
But some of the growth comes from the acquisition of Capco and Australia-based Amperi based in the previous UK this calendar year.
Share Wipro in NYSE rose by almost 8%.
Infosys rose 3.4%.
The two companies did far better than TCS, which grew by 16.8% in dollar requirements, and 15.5% in a constant currency.
But TCS, which announced the results last week, is also a much larger company.
The Indian IT service company benefits from the demand for digital transformation from the company globally.
Organizations around the world see digitalization as a key to sustainability, a sharp pandemic trend is accelerated.
Strong performance Infosys and future visibility around booking books encourage companies to improve their income guidance for the second consecutive quarter.
For the full year, now expect revenues of up to 16.5% -17.5%.
Three months ago, the forecast was 14% -16%, and at the beginning of the financial year, it has been guided for 12-14%, indicating that business prospects have increased sharply.
Salil Parekh, CEO of Infosys, said the company has increased market share and has shown more trust with its clients.
Wipro CEO Thierry Delaporte said the demand environment was very strong “and the pipe, which was the highest in the recent quarter, was a reflection of it.” The company has watched smart turnaround since the arrival of Delaporte around the middle of last year.
In sequence, this quarter growth was 8.1%, blew the guide by 5-7%.
This rarely happens in recent years.
Based on strong demand, Wipro hopes to grow between 2% and 4% in sequence in the third quarter, which translates to 27-30% in a constant currency compared to last year.
Run-rate annual income exceeds $ 10 billion.
Banking, Financial Services and Insurance (BFSI) are the top players for both companies.
For Wipro, it grew 43% in a constant currency, while consumer business rose 38%.
Wipro operating margin fell 100 basis points yoy to 17.8%, mainly due to the salary increase provided by the company in September.
It also spend more to employ external talents.
The Infosys operating margin decreased 1.6% YoY.
Infosys CFO Ninanjan Roy said the margin was influenced by increasing compensation and because of higher subcontracting costs.
“We are working on an aggressive cost optimization program to eliminate several headwinds.
We feel comfortable with our 22-24% margin guidance,” he said.
The great offer signed by Infosys worth $ 2.1 billion in the last quarter.
PAREKH said it was a reflection of the strategic focus and the power of the digital offer “Our digital business grew 42%, and now 56% of our total income.
In digital, clouds grow very fast,” he said.