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 (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

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