Infosys Soars 10% After Better-Than-Expected June Quarter Earnings

Infosys guided for 2 per cent revenue growth in constant currency terms for this financial year.

Infosys shares soared nearly 10 per cent to top the gainers charts on both, BSE and NSE after the country’s second largest information technology company reported better-than-expected earnings in the June quarter. Infosys had announced, post market hours on Wednesday, a 2 per cent sequential (quarter-on-quarter) decline in net profit to Rs 4,233 crore in the April-June period. The shares of Infosys rose 9.8 per cent to the day’s high of Rs 912.90 at opening bell. At 9:18 am, the Infosys shares were trading at Rs 912.10, up 9.3 per cent, on the BSE.

Infosys shares led sharp gains in the IT pack, pushing the Nifty IT index – comprising technology stocks of rivals Tata Consultancy Services and Wipro – 4 4 per cent higher. 

Infosys’ revenue from operations rose 1.7 per cent to Rs 23,665 crore from Rs 23,267 crore in the previous quarter. On an annual basis, Infosys’ net profit rose 11.4 per cent from Rs 3,798 crore during the same quarter last year.

The Bengaluru-based software services firm managed to secure large client deals during the COVID-19 pandemic. Infosys signed $1.74 billion worth of large deals in the three months to June 30, the company said in a statement.

In dollar terms, Infosys’ revenue declined 2.4 per cent on a sequential basis to $3,121 million, Infosys said in a press release.

Infosys has guided for 2 per cent revenue growth in constant currency terms for the current financial year while the operating margin is expected to remain in the range of 21-23 per cent, Infosys said.

Revenue from digital services came in at $1,389 million, which was 44.5 per cent of total revenues, Infosys added.

The BSE Sensex was quoting at 36,107, higher by 0.1 per cent and the NSE Nifty was absolutely flat at 10,615 at the time.

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