Infosys shares rose by 7.5% in early trading, contributing to its market valuation of Rs 42,821.36 crore. The company reported a 7.3% decline in net profit for the December quarter due to sluggish client demand.
Infosys shares rose over 7% in early trading on Friday after meeting market expectations in December quarter earnings, adding Rs 42,821.36 crore to its market value.
The stock rose 7.15 percent to Rs 1,604.90 on BSE and 7.14 percent to Rs 1,601 on NSE. Early activity saw the IT services firm’s mcap rise 42,821.36 crore to Rs 6,63,303.78 crore.
The 30-share BSE Sensex surged 557.53 points to 72,278.71 and the Nifty 158.80 to 21,806.70.
Financial outcomes
Infosys reported profits after market hours Thursday. Due to sluggish customer demand, the country’s second-largest IT services provider announced a 7.3% reduction in net profit for the December quarter and cut its year sales prediction.
The company’s third-quarter consolidated revenue from operations climbed 1.3% to Rs 38,821 crore from Rs 38,318 crore.
Infosys secured USD 3.2 billion in agreements, including a big one, with 71% net new wins despite the earnings drop. CEO and MD Salil Parekh said Infosys’ third-quarter performance was resilient, with the most transaction wins in nine quarters.
Similar quarterly results for Infosys. Revenue exceeded expectations and EBIT margin met expectations, according to YES Securities.
Infosys increased its fiscal year through March 2024 sales growth target to 1.5-2.5% from 1-2.5 percent in October. With Infosys and TCS reporting in-line and better-than-expected results, Geojit Financial Services Chief Investment Strategist V K Vijayakumar expects IT equities to gain.
Conclusion
In early trade, Infosys shares rose 7.5% to Rs 1,604.90, worth Rs 42,821.36 crore. The December quarter net profit declined 7.3% due to sluggish client demand and a lower annual sales forecast. With 71% net new wins, Infosys won USD 3.2 billion, including a large one. It increased its fiscal year through March 2024 revenue target by 1.5-2.0%. IT stocks may gain after Infosys’ in-line and TCS’ better-than-expected reports.
