Infosys Q2 net profit rises 11%, announces Rs 9,300-cr share buyback- QHN


IT major Infosys Ltd on Thursday reported 11% jump in consolidated net profit at Rs 6,021 crore for the quarter ending September 30, 2022, helped by strong demand for its digital services. It reported consolidated net profit of Rs 5,421 crore in the year-ago period.

The company’s consolidated revenue from operations rose 23% to Rs 36,538 crore in Q2FY23 as against Rs 29,602 crore in Q2FY22. Infosys has also announced a share buyback worth Rs 9,300 crore. Under the buyback programme, the price will not exceed Rs 1,850 per equity share. The price is 30% higher than the company shares’ closing price of Rs 1,422 apiece on Thursday.

The IT major will also pay an interim dividend totalling Rs 6,940 crore to the shareholders at Rs 16.5 per equity share.

“Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation”, said Salil Parekh, CEO and MD. “While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15%-16% for FY23,” he added.

Under a share buyback or repurchase, a company buys back its own shares from investors or shareholders. It is seen as an alternative, tax-efficient way to return money to shareholders.

Last year, the Infosys board had approved an up to Rs 9,200-crore share buyback plan, which commenced on June 25, 2021.

“Operating margins in Q2 expanded sequentially by 150 bps, helped by our operational rigor. While supply side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure,” said Nilanjan Roy, Chief Financial Officer. “In line with the capital allocation policy, the Board has announced an interim dividend of Rs 16.5 per share, an increase of 10% over FY 22 interim dividend and an open market share buyback of Rs 9,300 crores,” he added.

Infosys said it now expects revenue growth of 15%-16% for the financial year to March, higher than the 14%-16% increase it forecast in July.

The company trimmed its operating margins guidance for the year to 21%-22%, from the forecast of 21%-23% it gave in July.

Infosys’ raised forecast is in contrast to its rivals, who have issued cautious outlooks so far due to the challenging macro-environment and fears of an economic meltdown in their major markets of the US and Europe.

Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))

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