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Infosys share buyback as profits slide

Infosys posted a 30 percent fall in quarterly profits but CEO Salil Parekh said its digital business sector saw 33 percent growth
Infosys posted a 30 percent fall in quarterly profits but CEO Salil Parekh said its digital business sector saw 33 percent growth AFP/File
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Mumbai (AFP)

India's second-largest software exporter Infosys reported on Friday a 30 percent fall in quarterly profits amid seasonal weakness in the IT sector and mounting expenses.

The Bangalore-headquartered company also announced board approval for the buyback of shares worth 82.60 billion rupees ($1.184 billion) and raised its revenue forecast for the current financial year.

"We had another strong quarter in our digital business with 33.1 percent growth and large deals at $1.57 billion which gives us confidence entering 2019," chief executive Salil Parekh said in a statement.

Net profit in the three months to December 31 came in at 36.10 billion rupees ($511.94 million), below the 51.29 billion rupees in the same period a year earlier.

Infosys however raised its forecast for earnings growth from 8.0 percent to 8.5-9.0 percent in dollar terms for the current fiscal year.

India's $150 billion IT sector has long been one of its flagship industries but is facing upheaval in the face of automation, a failure to keep up with new technologies and visa restrictions.

Infosys' rival and India's largest IT services exporter Tata Consultancy Services Thursday reported a 24.1 percent rise in net profit for the quarter ending in December.

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