Infosys posts strong Q2 earnings; raises FY21 guidance
Shares of Infosys traded 2% lower Thursday despite posting strong earnings for the fiscal second quarter as well as guidance for higher growth in near term. It seems the stock hitting a fresh 52-week high at Rs 1,185 when markets opened this morning, triggered profit taking.
India’s second largest software services exporter’s September quarter performance has bettered street expectations, led by the record deal wins that also prompted upgrade in full-year earnings guidance. This has nudged analysts to increase their FY21 earnings forecast for the stock by 4-12%.
The Bengaluru-based firm increased its full-year revenue growth guidance to the 2-3% range in constant currency terms (CC) from 0-2% earlier.
On Wednesday, after market hours, Infosys reported 20.50% year-on-year (YoY) rise in net profit at Rs 4,845 crore for the quarter ended September 30. The figure stood at Rs 4,019 crore in the corresponding quarter last year.
It’s revenue in dollar term increased by 3.2% YoY and 6.1% QoQ to $3,312 million. Operating profit stood at $840 million, up 20.7% YoY and 18.7% QoQ. Basic EPS increased 14.90% YoY and 17% QoQ to $0.15.
Consolidated revenue of the IT major grew 8.60% YoY to Rs 24,570 crore.
Infosys has also declared an interim dividend of Rs 12 per share.
Voluntary attrition for IT services declined to 7.80% from 11.70% in the preceding quarter ended June 30. The figure stood at 18.30% as of September 30 last year. Margins expanded to 25.3%, increasing by a massive 270 basis points.
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