BANGALORE: Indian outsourcing giant Infosys on Tuesday reported quarterly net profit rose by a surprise 25 per cent, lifted by new European and US contracts, as it forecast an increase in annual revenues.

The Nasdaq-listed firm announced consolidated net profit climbed to 29.92-billion rupees ($496 million) in the January-March quarter from 23.9bn rupees in the same year-earlier period.

Analysts had expected Infosys to report a profit of 28.1bn rupees.

Shares of the company leapt by as much as 4pc after Infosys, India’s second largest IT services exporter by sales, forecast revenues would climb seven to 9pc in US dollar terms for the financial year that began in April.