Infosys to witness strongest revenue growth during FY 2010-13

The revenue growth of Indian tech major Infosys may be the most robust among the three leading information technology providers in the country during the ensuing three fiscal years.

Quoting a report released recently by the financial service vendor IIFL, a leading news portal says that a number of latest contracts bagged by the IT firm from overseas companies like British Petroleum and Telstra have enabled it to include new key profitable customers in its client profile. According to the report, it is anticipated that these customers will facilitate in maintaining Infosys’ growth rate – the fastest in the Indian IT sector.

The hostile ramp downs from some its major customers during the recent global economic recession notwithstanding, Infosys managed to record the fastest growth rate in the Indian IT industry and was far ahead of its rivals Tata Consultancy Services (TCS) and HCL. It may be noted here that as of date TCS is the largest IT services vendor in India in terms of export revenue earnings.

The IIFL report further emphasized that since Infosys has the greatest exposure in the US market, the firm has the minimum susceptibility to the sudden devaluation of currencies in a number of European nations now. In addition, compared to the customers in Europe, the US clients have been definitely quicker in recovering their IT spending, the report added.

Substantiating its claim, the IIFL report says that the relatively quick recovery in IT spending by the clients in the Unite States together with the comparatively high exposure of Infosys in the US market will enable the company to record a revenue growth that is highest in the Indian IT sector. Citing statistics, the report further said that during the last four financial quarters, the company’s revenue from its US clients went up by 16.5 per cent, while its proceeds from the European market witnessed a decrease of 13 to 14 per cent during the corresponding period.

In addition, the report anticipates that Infosys’ Earning per Share (EPS) too may record a Compound Annual Growth Rate (CAGR) of around 23 per cent during the period between fiscal years 2010 and 2013 compared to the projected 18 to 20 per cent CAGR by its rivals.