Infosys, India’s second-largest IT services company, might announce a share buyback on Thursday when it announces its Q1 FY13 earnings. The stock market is abuzz with rumours that the Bangalore-based IT giant is expected to make an announcement to this effect tomorrow.
It will be Infosys' maiden share buyback if indeed it announces on Thursday.
As of March 31, 2012, Infosys had cash reserves of US$4.1bn (Rs 209.68bn).
However, some IT analysts say a share buyback won't be enough if Infosys doesn't deliver on the earnings front. It may be recalled that Infosys has been struggling to meet market expectations on earnings for the past few quarters, keeping its shares under pressure.
Infosys has given a full-year guidance of 8-10% growth in dollar revenues, lower than the 11-14% revenue growth rate announced by industry body NASSCOM.