Infosys shares zoom over 9% on Q1 earnings; m-cap jumps Rs 33,853 crore

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

The stock rose for the second consecutive day and zoomed 9.56 percent to close at Rs 910.90 on the BSE. During the day, it jumped 14.49 percent to its record high of Rs 952.

On the NSE, it rose sharply by 9.51 percent to settle at Rs 910.

The company's market valuation increased by Rs 33,853.4 crore to Rs 3,87,966.40 crore on the BSE.

In terms of volume, 33.28 lakh shares were traded on the BSE and over nine crore on the NSE.

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 a 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 two percent.

The Bengaluru-based company, which logged large deal wins worth USD 1.7 billion during the quarter, saw its digital revenues growing over 25 percent to USD 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 the year-ago period.

While the 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.