Infosys shares soar 15% on stronger-than-expected Q1 earnings

Shares of Infosys rallied 15 percent on Thursday after the company posted a stronger-than-expected 12.4 percent rise in the first quarter consolidated net profit.

The stock jumped 14.49 percent to its one-year high of Rs 952 on the BSE.

On the NSE, it rose sharply by 14.98 percent 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 percent for FY21," according to a report by Edelweiss Research.

Infosys on Wednesday posted 12.4 percent 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 percent.

The Bengaluru-based company, which logged large deal wins worth $1.7 billion during the quarter, saw its digital revenues growing over 25 percent to $1.38 billion (44.5 percent 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 percent 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 percent in constant currency terms, Infosys CEO and Managing Director Salil Parekh said.