Infosys shares rose over 5% to Rs 1,494 on the BSE
in Friday’s intra-day trade after the IT major reported better-than-expected
11% year-on-year growth in consolidated net profit at Rs 6,021 crore for the
September quarter. The company also announced a buyback of shares worth Rs
At 12.40 pm IST, the stock was trading at 72.70
points or 5.12% higher at Rs 1,492.45 on the BSE. The stock touched an intraday
high of Rs 1,494 on the BSE. It has a total market cap of Rs 6,27,997 crore as
of October 14.
The Bengaluru-based IT company announced an interim
dividend of Rs 16.5 per share. The interim dividend payout will be around Rs
6,940 crore, the company said in a statement. The company has fixed October 28
as record date for interim dividend and November 10 as the payout date.
It also raised its revenue guidance for the
financial year 2023 to 15-16%, pushing the forecast towards the higher end of
the previously-projected 14-16% band, buoyed by “strong large deals pipeline”
and solid demand momentum despite global macroeconomic concerns.
Infosys’ revenue from operations stood at Rs 36,538
crore, recording a 23.4% growth compared with Rs 29,602 crore in the second
quarter of fiscal 2023. The operating margin for the quarter increased
sequentially by 140 basis points to 21.5%.
The company has set the maximum buyback price at Rs
1,850, a premium of 30% over the last closing price. The buyback will be
carried via the open market route. Additionally, the company has allowed
American Depositary Shares to convert their ADS into equity shares and
subsequently can sell such shares on the Indian exchanges during the buyback
period. Under the proposed buyback, the maximum number of shares to be bought
back would be 50,270,270 equity shares.
On Friday, Motilal Oswal Financial Services in
their research report gave a “Buy” rating on the stock with a target price of
“We have kept our FY23/FY24 EPS estimate broadly
flat after the 2QFY23 result and view Infosys as a beneficiary of an
acceleration in IT spends, given its capabilities around Cloud and Digital
transformation. We value the stock at 25x FY24E EPS and reiterate our Buy
rating,” the brokerage firm said.