While Infosys? quarterly earnings were better that Street expectations, a significant push for its revenue growth during the October-December quarter seems to have come from Europe despite the region?s macroeconomic concerns.
In addition to winning new clients in the continent, Infosys also benefitted from the consulting business of Swiss firm Lodestone Holding AG, which it acquired last year.
Europe?s contribution to the company?s overall revenue increased to 24% during the quarter from 21.9% in the preceding three months and 22.6% during the year-ago period. While the US continued to be Infosys? biggest market by far, in comparison, it accounted for 61% of the overall revenue, down from 63.9% in the July-September quarter.
?Past deals signed in the consulting space have started ramping up. That is now reflecting in the revenue, both including Lodestone and excluding it,? said Sanjeev Hota, assistant vice-president, research (IT), Sharekhan. The Europe business grew about 16.6% sequentially, including Lodestone?s revenues.
According to Infosys, the growth in Europe, where the company had three large wins, was broadbased and across verticals. As many as 13 of the new 53 clients the company added during the quarter were from the region.
?Growth during the quarter in Europe has come from verticals like financial services, manufacturing and energy. We had three transformational wins in continental Europe,? said BG Srinivas, head of Europe and manufacturing, Infosys.
