The figures indicate a gradual uptick in client spending at India's second-largest software services exporter, which has grappled with a slowdown and global economic uncertainty made worse by US President Donald Trump's tariff disruptions.

While Trump's duties do not directly affect India's $283 billion software service sector, trade tensions have made their customers less likely to spend on big tech projects.

Infosys, which earns more than 80 percent of its revenue from Western markets, said revenue was now projected to grow three to 3.5 percent on a constant-currency basis for the fiscal year ending March 31.

It had earlier forecast revenue would grow two to three percent this financial year.

The Bengaluru-headquartered firm also reported a 8.9 percent on-year increase in revenue to hit 454.8 billion rupees ($5 billion) for the three months that ended December 31.

Analysts had on average estimated a topline of 452.2 billion rupees.

The company's net profit, however, did fall 2.2 percent to 66.5 billion rupees -- a dip that Infosys attributed to a one-time expense to comply with India's new labour laws.

Chief executive Salil Parekh said the company's "strong" performance was partly due to the company's enterprise AI offerings.

"Clients increasingly view Infosys as their AI partner," Parekh said in a statement, adding that the company was committed to reskilling its staff to "drive success in an AI augmented world".

While Infosys's topline beat analyst expectations, the broader sector continues to face headwinds.

That includes Trump's decision to impose a $100,000 fee on new H-1B visa applications, which experts say will force Indian firms to hire more from the United States, squeezing margins as a result.

asv/pjm/mjw

Infosys