New Delhi: Shares of Infosys jumped over 7 percent in early trade on Friday, adding Rs 42,821.36 crore to its market valuation, after the company’s December quarter earnings came in-line with market expectations.
The stock rallied 7.15 percent to Rs 1,604.90 on the BSE after a firm beginning. At the NSE, it climbed 7.14 percent to Rs 1,601. The market capitalisation (Mcap) of the IT services firm jumped Rs 42,821.36 crore to Rs 6,63,303.78 crore in early trade.
In the equity market, the 30-share BSE Sensex traded with a jump of 557.53 points at 72,278.71, and the Nifty climbed 158.80 points to 21,806.70. The company’s earnings came in post market hours on Thursday.
The country’s second-largest IT services firm Infosys on Thursday reported a 7.3 percent fall in net profit in the December quarter on sluggish demand from clients and cut its annual sales forecast. The company posted a net profit (attributable to shareholders) of Rs 6,106 crore compared to Rs 6,586 crore in the year-ago period, Infosys said in a regulatory filing.
The company’s consolidated revenue from operations increased 1.3 percent to Rs 38,821 crore during the third quarter of the ongoing fiscal from Rs 38,318 crore a year ago. Infosys bagged deals worth USD 3.2 billion, including a mega deal during the quarter, which included 71 percent net new wins.
“Our performance in the third quarter was resilient. Large deal wins were strong at USD 3.2 billion, with 71 percent of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency, and automation. This is the highest deal win in the nine quarters that the company has ever had,” Infosys CEO and MD Salil Parekh said.
“Infosys reported broadly in-line performance for the quarter. The revenue growth was above estimates; while EBIT margin was in-line with expectation,” according to a report by YES Securities.
Infosys’ revenue will increase 1.5-2 percent in the fiscal year through March 2024 as against the 1-2.5 percent guidance it had given in October. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, with in-line results from Infosys and better-than-expected results from TCS, IT stocks will see some action today.