Infosys shares surge on buyback announcement, Q2 results
Oct 14, 2022
Mumbai (Maharashtra) [India], October 14 : Share price of Infosys surged by around 5 per cent on Friday a day after the company announced buyback plans and posted a better-than-expected 11 per cent jump in its consolidated net profit.
On the BSE, Infosys share was trading 4.86 per cent higher at Rs 1488.70 at 10.16 am. The trading in Infosys shares started sharply higher at Rs 1487.70 against its previous day's close at Rs 1419.75. The scrip surged to a high of Rs 1490 in the intra-day.
Infosys shares have rallied after the announcement of the Q2 results.
Infosys board of directors at its meeting held here on Thursday approved the buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to Rs 9,300 crore (maximum buyback size, excluding buyback tax) at a price not exceeding Rs 1,850 per share (maximum buyback price), subject to shareholders' approval.
The board also approved an interim dividend of Rs 16.50 per share vs. FY 22 interim dividend of Rs15. The total amount of the interim dividend will be approximately Rs 6,940 crore.
India's second-largest IT services firm said its consolidated net profit surged by 11.1 per cent year-on-year to Rs 6,021 crore for the quarter second quarter of the current financial year as compared to Rs 5,421 core recorded in the corresponding period of the previous year.
The company's revenue from operations jumped by 23.4 per cent to Rs 36,538 crore for the quarter ended September 30, 2022 as compared to Rs 29,602 crore recorded in the corresponding quarter of the previous year.
Sequentially, Infosys revenue grew 6 per cent while net profits increased by 12.3 per cent during the quarter under review year-on-year.
Infosys announced its financial results on Thursday after close of the stock market trading for the day.
"Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation," Infosys chief executive officer and managing director Salil Parekh said in a statement released on Thursday.
"While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15-16 per cent for FY 23," Parekh said.
As per the regulatory filing by Infosys to the stock exchanges, the company's year-on-year growth was in double digits across all business segments in constant currency terms.
