Infosys Q2FY23 Result: Net Profit Jumps 11.1% To Rs 6,021 Crore; Rs 9,300 Cr Share Buyback Announced

Infosys Q2 Results: IT major Infosys on Thursday posted a consolidated net profit of Rs 6,021 crore for the September 2022 quarter, a growth of 11.1 per cent as compared with Rs 5,421 crore in the year-ago quarter. The company’s revenue jumped 23.4 per cent to Rs 36,538 crore, against Rs 29,602 crore in the September 2021 quarter. Sequentially, Infosys’ net profit jumped 12.3 per cent as compared with Rs 5,360 crore in the June 2022 quarter.

On a quarter-on-quarter basis, its revenue rose 6 per cent during July-September 2022 as against Rs 34,470 crore in the preceding quarter, according to a BSE filing. In dollar terms, Infosys’ revenue jumped 13.9 per cent to $4,555 million in the September 2022 quarter, compared with $3,998 million a year ago.

Infosys on Thursday also declared an interim dividend of Rs 16.5 per equity share. It has fixed October 28 as the record date for the interim dividend and November 10 as the payout date.

The company on Thursday also announced a share buyback of Rs 9,300 crore. “The board approved a proposal for the company to buyback its own fully paid-up equity shares of face value of Rs 5 each from the equity shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company), being 14.84 per cent and 13.31 per cent of its total paid-up capital and free reserves as on September 30, 2022 (on a standalone and consolidated basis, respectively) for an amount, payable in cash, aggregating up to Rs 9,300 crore,” Infosys said.

The company’s voluntary attrition stood at 27.1 per cent in Q2FY23, compared with 28.4 per cent in the previous quarter. On a yearly basis, the attrition rate is high compared to the 20.1 per cent recorded in Q2FY22.

On the business outlook ahead, Infosys has raised its FY23 revenue guidance to 15-16 per cent, compared with 14-16 per cent earlier. It has also cut its FY23 operating margins guidance to 21-22 per cent, from the forecast of 21-23 per cent it gave in July.

Infosys CEO and MD Salil Parekh said, “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… 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 per cent for FY23.”

The company’s total operating expenses jumped 15.2 per cent to Rs 3,253 crore during July-September 2022, compared with Rs 2,824 crore a year ago.

Infosys’ basic earnings per share during the September 2022 quarter stood at Rs 14.35, compared with Rs 12.88 a year ago.

Infosys Chief Financial Officer Nilanjan Roy said, “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.”

Roy added that in line with the capital allocation policy, the board has announced an interim dividend of Rs 16.50 per share, an increase of 10 per cent over FY22 interim dividend and an open market share buyback of Rs 9,300 crore.

Shares of Infosys on Thursday fell 0.5 per cent to close at Rs 1,465 apiece on the BSE.

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