BENGALURU: The country’s second-largest IT services company Infosys on Thursday, beating street estimates, reported an 11% increase in its consolidated net profit for the second quarter (July-September) at Rs 6,021 crore compared to Rs 5,421 crore posted in the same quarter last year.
Infosys also announced a Rs 9,300 crore share buyback plan and has set the maximum price at Rs 1,850, which is a premium of 30%. The company’s shares closed at Rs 1,419.75 on Thursday on the BSE.
“Subject to the market price of the equity shares being equal to the maximum buyback price, the indicative maximum number of equity shares bought back would be 50,270,270 equity shares, comprising nearly 1.19% of the paid-up capital of the company as of September 30, 2022,” Infosys said. This is the company’s fourth buyback in the last five years.
The IT company’s revenue from operations for the second quarter stood at Rs 36,538 crore, a 23% increase from the year-ago period. It had reported Rs 29,602 crore in Q2FY22. Infosys also revised its FY 23 revenue guidance to 15%-16% from 14%-16%, and trimmed its operating margin guidance to 21%-22% (from 21%-23%).
“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% for FY 23”, said Salil Parekh, CEO and MD, Infosys.
Parekh said the company signed 27 large deals in Q2. The large deal TCV (total contract value) in Q2 was at $2.7 billion, which is the highest in the last seven quarters. Infosys CEO at the Q2 earnings conference said they also see some caution in hi-tech and telecom besides mortgage and financial services. The company’s operating margin for Q2 increased sequentially by 140 bps to 21.5%. Infosys also announced Rs 16.50 per share interim dividend.
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