Better-than-expected earnings from IT major Infosys pushed its shares to a record high, adding about ₹50,000 crore to its investors’ wealth in the first hour of trade on BSE. Infosys on Wednesday reported an 11.4% rise in quarterly net profits, winning large client deals despite coronavirus-led disruptions. Infosys shares rose as much as 15% to ₹952 on BSE.
Better-than-expected earnings from IT major Infosys pushed its shares to a record high, adding about ₹50,000 crore to its investors’ wealth in the first hour of trade on BSE. Infosys on Wednesday reported an 11.4% rise in quarterly net profits, winning large client deals despite coronavirus-led disruptions. Infosys shares rose as much as 15% to ₹952 on BSE.
The Bangalore-headquartered firm posted a net profit of ₹4,233 crore for the quarter ended June 30, an increase from the ₹3,798 crore recorded a year earlier for the same period. Infosys said it secured deals worth $1.74 billion during the period, higher than the $1.65 billion reported in the previous quarter.
“Our Q1 results, especially growth, are a clear testimony to the relevance of our service offerings and deep understanding of clients’ business priorities which is resonating with them in these times,” Salil Parekh, Chief Executive of Infosys, said in a statement.
Analysts said the firm’s ability to sign lucrative deals enabled it to weather the quarter with relative success.
The Bengaluru-based firm expects revenue to be flat or grow 2% on a constant currency basis and operating margins of 21%-23% for 2020-21. This compares with a revenue growth of 9% or more in the last two years on a constant currency basis. The company had not provided any projections in the March quarter, citing COVID-19-related uncertainty.
