Similarly, for the whole fiscal, consolidated revenue is projected to decline 4.6-3.1 percent YoY to $4.45-4.52 billion, as per the IFRS.

'We continue to invest in the future to take advantage of the growth opportunities in the medium and long-term,' Gopalakrishnan said.

On annualised basis, net profit for the first quarter grew by 17.3 percent to Rs.15.27 billion (Rs.1,527 crore) from Rs.13.02 billion (Rs.1,302 crore) a year ago, while revenue increased 12.7 percent to Rs.54.72 billion (Rs.5,472 crore) from Rs.48.54 billion (Rs.4,854 crore) in the same period year ago, as per the Indian accounting standard.

'We continue to focus on margins, while making the right investments to accelerate growth,' Balakrishnan said.

In dollar terms, net income grew marginally by 1.6 percent to $313 million from $308 million year ago, while revenue declined 2.9 percent to $1.12 billion from $1.15 billion in the same quarter year ago, as per the IFRS.

Unfazed by the downturn, Infosys chief operating officer S.D. Shibulal said the company was winning large deals and had benefited from vendor consolidation with certain clients.

But due to lower technology spending in light of downturn worldwide, client acquistion also declined to 27 as against 37 in the previous quarter and 49 in the year-ago period.

As a result, the company has 569 active clients at the end of first quarter as against 579 in the last quarter and 567 year ago.