Stocks

Infosys shares tumble over 5 per cent after earnings report

PTI New Delhi | Updated on April 15, 2021

The Bengaluru-based company's net profit (after minority interest) was ₹4,321 crore in the January-March 2020 quarter

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.

Published on April 15, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.