- Infosys share price surged to a record new high
- Company’s shareholders gain Rs. 45,000 crore in one hour
- The company secured deals worth $ 1.74 billion
The IT giant Infosys has delivered better-than-expected earning as its share pushes to a record high price and added Rs. 45,000 crore to the company’s investor’s wealth.
On Wednesday, Infosys reported a rise of 11.4% in its quarterly net profits as the firm won large client deals even during the time of COVID-19 pandemic and lockdown put in place to contain it.
Infosys which is headquartered in Bangalore posted a net profit of Rs. 4,233 crore for the quarter which ended on 30th of June which was an increase 11.4% from Rs. 3,798 crore which was recorded in the same period in 2019.
Infosys said that it managed to secure deals worth $ 1.74 billion during this period which in the previous quarter it reported deals worth $ 1.65 billion. The firm also benefited from the Indian rupee’s depreciation against the US dollar.
The company said the its revenue surged to Rs. 23,665 crore which is an increase of a whopping 8.5%.
Infosys’ Chief Executive Officer (CEO), Salil Parekh said, “Our Q1 results, especially growth, are a clear testimony to the relevance of our service offerings and deep understanding of clients’ business priorities which is resonating with them in these times,” in a statement.
Analysts say that Infosys’ ability to sign lucrative deals even during the time of a pandemic has enabled it to get success in the quarter.
A report said, “The Bengaluru-based firm expects revenue to be flat or grow 2% on a constant currency basis and operating margins of 21%-23% for 2020-21. This compares with revenue growth of 9% or more in the last two years on a constant currency basis.”
However, the firm did not provide any projections in the March quarter citing the Coronavirus related uncertainty.
Domestic brokerage firm Edelweiss has upgraded its target price on Infosys also given the Revenue outperformance and guidance shows confidence Rs. 1,080 crore, from Rs. 950 crore earlier, reiterating its “buy” call.
The brokerage said, “Infosys’s results beat estimates substantially (revenue/margins), but the key positive is the reiteration of revenue guidance growth of 0–2% (CC) for FY21. We believe Indian IT is at the bottom of a tech upcycle as the explosion of digital activity in catalysing the transformation of core, cloud adoption and build-up of digital capabilities,”.