Infosys shares soar to record high on stronger-than-expected Q1 profits
New Delhi: Shares of Infosys rallied 15 per cent on Thursday after the company posted a stronger-than-expected 12.4 per cent rise in the first quarter consolidated net profit.
The stock jumped 14.49 per cent to its one-year high of Rs 952 on the BSE.
On the NSE, it rose sharply by 14.98 per cent to its 52-week high of Rs 955.50.
It was the biggest gainer on the BSE 30-share Sensex and NSE 50-share Nifty.
"Infosys's results beat estimates substantially (revenue/margins), but the key positive is the reiteration of revenue guidance growth of 0-2 per cent for FY21," according to a report by Edelweiss Research.
Infosys on Wednesday posted 12.4 per cent rise in the first quarter consolidated net profit to Rs 4,272 crore, helped by large deals, and said its FY21 revenue is likely to grow by up to 2 per cent.
The Bengaluru-based company, which logged large deal wins worth USD 1.7 billion during the quarter, saw its digital revenues growing over 25 per cent to USD 1.38 billion (44.5 per cent of total revenues).
The company had posted a net profit (before minority interest) of Rs 3,802 crore in the June 2019 quarter. Revenue grew 8.5 per cent to Rs 23,665 crore in the quarter under review from Rs 21,803 crore in year-ago period.
While COVID-19 pandemic still presents challenges, the company is reinstating its guidance for the full financial year at 0-2 per cent in constant currency terms, Infosys CEO and Managing Director Salil Parekh said.
