Infosys shares jump nearly 5 pc after earnings announcement

The stock jumped 4.78 per cent to Rs 1,487.70 on the BSE.
Representative image
Representative image

MUMBAI: Shares of Infosys climbed nearly 5 per cent in morning trade on Friday, after the company posted better-than-expected 11 per cent rise in consolidated net profit for the September quarter and announced buyback of shares.

The stock jumped 4.78 per cent to Rs 1,487.70 on the BSE.

At the NSE, it climbed 4.58 per cent to Rs 1,485.

Other IT stocks like HCL Technologies, Wipro and Tech Mahindra were also quoting higher.

The 30-share BSE index was trading 1,040.65 points or 1.82 per cent higher at 58,275.98 in morning trade.

India's second largest IT services company Infosys on Thursday posted a better-than-expected 11 per cent rise in consolidated net profit at Rs 6,021 crore for the September quarter and announced buyback of shares worth Rs 9,300 crore.

The Bengaluru-headquartered company raised its FY23 revenue growth guidance to 15-16 per cent, pushing the forecast towards the higher end of previously-projected 14-16 per cent band, buoyed by ''strong large deals pipeline'' and good demand momentum despite global macroeconomic concerns.

''An important takeaway from IT results announced so far is that the segment is doing well and the management commentary is optimistic,'' according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Infosys board has also declared an interim dividend of Rs 16.50 per share. The interim dividend payout will be about Rs 6,940 crore, the company said in a statement.

Infosys -- which competes with Tata Consultancy Services, Wipro, HCL Technologies on outsourcing contracts -- reported an 11 per cent year-on-year rise in consolidated net profit for the second quarter ended September 2022 at Rs 6,021 crore.

The revenue rose 23.4 per cent year-on-year to Rs 36,538 crore in the second quarter ended September.

The company has announced share buyback worth Rs 9,300 crore via open market route, for a price of up to Rs 1,850 per equity share. The buyback price is 30 per cent higher than the scrip closing price of Rs 1,419.7 apiece on Thursday.

Share buyback is seen as an alternative, tax-efficient way to return money to shareholders.

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