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Shares of Infosys on Thursday declined over 5 per cent on profit-booking after its March 2021 quarter earnings missed market expectations.
The stock dipped 5.59 per cent to ₹1,320.35 on BSE. At NSE, it tumbled 5.52 per cent to ₹1,320.
"Infosys reported a muted set of Q4 FY21 numbers. FY22 revenue growth (12-14 per cent) and margin (22-24 per cent) guidance were lower than our expectations of 13-15 per cent revenue growth and 23-24 per cent margin," according to a report by Edelweiss Securities.
IT services major Infosys on Wednesday posted a 17.5 per cent rise in net profit to ₹5,076 crore for the March quarter, and announced up to ₹9,200 crore buyback offer at a maximum price of ₹1,750 per share.
The Bengaluru-based company's net profit (after minority interest) was ₹4,321 crore in the January-March 2020 quarter.
Its revenue grew 13.1 per cent to ₹26,311 crore in the March 2021 quarter from ₹23,267 crore in the year-ago period, Infosys said in a regulatory filing.
The company's FY21 net profit was up 16.6 per cent at ₹19,351 crore, while revenue rose by 10.7 per cent to ₹1,00,472 crore compared to the previous fiscal.
Infosys expects FY22 revenue to grow 12-14 per cent in constant currency.
The Board has recommended a capital return of ₹15,600 crore, including a final dividend of ₹6,400 crore and open market buyback of shares of ₹9,200 crore, it said.
The Board has recommended a final dividend of ₹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 per cent 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.
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