Infosys shares close nearly 3% lower; m-cap declines by Rs 15,807 crore after earnings
Infosys' market valuation went lower by Rs 15,807.03 crore to Rs 5,80,088.97 crore on the BSE
New Delhi: Shares of Infosys on Thursday closed nearly 3% lower on profit-booking after its March 2021 quarter earnings missed market expectations. The stock dipped 5.59% to Rs 1,320.35 during the day on the BSE. It closed at Rs 1,361.50, lower by 2.65%. On the NSE, it declined 2.60% to close at Rs 1,360.75.
Its market valuation went lower by Rs 15,807.03 crore to Rs 5,80,088.97 crore on the BSE. In traded volume terms, 13.27 lakh shares were traded at the BSE and over 2.53 crore shares at the NSE during the day.
“Infosys reported a muted set of the fourth quarter of FY21 numbers. FY22 revenue growth (12-14%) and margin (22-24%) guidance were lower than our expectations of 13-15% revenue growth and 23-24% margin,” according to a report by Edelweiss Securities.
IT services major Infosys on Wednesday posted a 17.5% rise in net profit to Rs 5,076 crore for the March quarter, and announced up to Rs 9,200 crore buyback offer at a maximum price of Rs 1,750 per share.
The Bengaluru-based company’s net profit (after minority interest) was Rs 4,321 crore in the January-March 2020 quarter.
Its revenue grew 13.1% to Rs 26,311 crore in the March 2021 quarter from Rs 23,267 crore in the year-ago period, Infosys said in a regulatory filing.
The company’s financial year 2021 net profit was up 16.6% at Rs 19,351 crore, while revenue rose by 10.7% to Rs 1,00,472 crore compared to the previous fiscal.
Infosys expects the financial year 2022 revenue to grow 12-14 per cent in constant currency.
The board has recommended a capital return of Rs 15,600 crore, including a final dividend of Rs 6,400 crore and open market buyback of shares of Rs 9,200 crore, it said.
The board has recommended a final dividend of Rs 15 per equity share for the financial year ended March 31, 2021. Equity markets were closed on Wednesday.
“In INR term, it reported revenue Rs 263.bn (up 1.5% Q-o-Q), a slight miss on our estimate. It is to be noted that there was an adverse impact of INR appreciation in reported INR revenue for the quarter; and also, the revenue growth for the quarter was impacted by some time being taken in ramping up large deals,” as per a report on Infosys by YES Securities.