Infosys Q2 Earnings: Net Profit Rises 11% To Rs 6,021 Crore, Company Announces Rs 9,300-Crore Share Buyback
Infosys will also pay an interim dividend totalling Rs 6,940 crore to the shareholders
Indian IT services company Infosys on Thursday clocked an 11 per cent year-on-year (YoY) rise in consolidated net profit to Rs 6,021 crore for the September quarter (Q2) and also announced a share buyback programme worth Rs 9,300 crore.
The IT major will also pay an interim dividend totalling Rs 6,940 crore to the shareholders.
The net profit of Infosys stood at Rs 5,421 crore in the same period a year ago.
According to a regulatory filing, Infosys’s revenue rose 23.4 per cent YoY to Rs 36,538 crore in the second quarter of the current fiscal year. The same stood at Rs 29,602 crore in the year-ago period.
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Infosys has also announced a share buyback worth Rs 9,300 crore. Under the buyback programme, the price will not exceed Rs 1,850 per equity share. The price is 30 per cent higher than the company's closing price of Rs 1,419.7 apiece on Thursday.
Under a share buyback or repurchase, a company buys back its own shares from investors or shareholders. It is seen as an alternative, tax-efficient way to return money to shareholders.
Infosys board last year had approved an up to Rs 9,200-crore share buyback plan, which commenced on June 25, 2021.
The company revised its FY23 revenue guidance to 15-16 per cent growth, tighter than 14-16 per cent it had projected earlier.
The operating margin guidance has been revised to 21-22 per cent, the company said in a statement.
"Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation", Salil Parekh, CEO and MD of Infosys, said.
While concerns around the economic outlook persist, he said the 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 per cent for FY23”, Parekh added.
Shares of Infosys slipped 0.64 per cent to Rs 1,419.75 apiece on the BSE on Thursday.
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