Infosys' stock rises after Q2 results and share buyback announcement

14 Oct 2022 , 10:05 AM

In Friday’s intraday trading on the BSE, Infosys shares increased 5% to Rs1,487.70 after the IT giant reported a better-than-expected 11% year-over-year (YoY) rise in consolidated net profit at Rs6,021 crore for the September quarter and announced a repurchase of shares worth Rs9,300 crore.

“Revenues for Infosys’ Q2-FY23 results were in line with expectations, while margins (up 140bps QoQ to 21.5%) surprised pleasantly due to decreased subcontracting expenses and helped the company outperform projections. The magnitude of the repurchase is in line with what we anticipated, although the maximum price is a little more than expected “In a post-result note, Jefferies’ Akshat Agarwal and Ankur Pant were quoted. They keep the stock with a “buy” rating and a target price of Rs1,700 per share.

The second-largest IT services provider in India raised the lower end of its revenue projection for FY23 while maintaining the upper end or from 14 to 16 % to 15 to 16 % in constant currency (CC). Regarding the EBIT margin forecast, it has adjusted the higher end from 21—23% to 21—22% for FY23E while maintaining the bottom end the same. Despite global macroeconomic worries, a “strong major transactions pipeline” and excellent demand momentum support the higher increase in revenue expectations.

Additionally, the board of Infosys announced an interim dividend of Rs16.50 per share. According to a statement from the corporation, the interim dividend distribution will be around Rs6,940 crore. For the interim dividend, the business has set October 28 as the record date and November 10 as the distribution date.

Revenues for the firm climbed 18.8% on a year-over-year (YoY) basis and by 4% QoQ in CC terms. Revenues in dollars were up 2.5% quarter over quarter to $ 4,555 million, while those in rupees rose 6% quarter over quarter to Rs36,538 crore.

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