JOIN USInfosys shares trim most of early gains; close flat
Shares of Infosys on Thursday gave up most of their early gains and settled on a flat note.
In morning trade, it had jumped over 4 per cent after the company reported a better-than-expected 12 per cent rise in its second-quarter net profit.
The stock, which gained 4.40 per cent to Rs 1,784.05 in the morning trade on the BSE, later gave up most of the gains and settled at Rs 1,715.50, up 0.40 per cent.
On the NSE, it settled at Rs 1,714, a gain of 0.28 per cent after jumping 4.35 per cent to Rs 1,783.60 in the morning trade.
In traded volume terms, 4.95 lakh shares were traded at the BSE and over 1.96 crore shares at the NSE during the day.
"Reported strong financial performance with both revenue and EBIT margin above estimates. The deal booking remains strong and would support growth momentum," according to a report by YES Securities on Q2 financial year 2021-22 result update on Infosys.
Infosys Ltd, India's second-largest IT services company, on Wednesday reported a better-than-expected 12 per cent rise in its second-quarter net profit on more contracts from global businesses, a reason that also led to raising its annual revenue outlook.
Net profit in July-September at Rs 5,421 crore, or Rs 12.88 a share, was 11.9 per cent higher than Rs 4,845 crore (or Rs 11.42 a share) net profit in the same period a year back.
The net profit, which is 4.4 per cent higher than the preceding June quarter, came on the back of broad-based growth across verticals and geographies, strong revenue contribution from the Daimler deal, and higher adoption of digital transformation by clients.
The firm raised its forecast for annual revenue growth to 16.5 per cent to 17.5 per cent in fiscal 2022, from 14-16 per cent growth predicted in July.
This is on the back of expectations of winning more contracts from global businesses, expanding their digital offerings during the Covid-19 pandemic.
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