Infosys to announce Q3 results on January 11; stock rises

At 10:08 am, Infosys shares held on firmly to the green, with a gain of 3.1 per cent at Rs 1,547 apiece on the bourse.

Representative image. Source: Reuters

Infosys shares rose on Friday, extending gains to a second straight session, after the country’s second largest IT service provider said its board will meet on January 11, to consider and approve, among other things, its financial results for the quarter ending December 31, 2023. The stock of the Bengaluru-based IT company gained by as much as Rs 67.1, or 4.5 per cent, to Rs 1,568.4 apiece on BSE, coming within Rs 52 of a 52-week high of Rs 1,620 scaled in February 2023.

At 10:08 am, Infosys shares held on firmly to the green, with a gain of 3.1 per cent at Rs 1,547 apiece on the bourse.

How did Infosys fare in Q2?

Infosys reported a consolidated net profit of Rs 6,212 crore for the quarter ended September 30, marking an increase of 4.5 per cent on a sequential basis.

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The IT major's quarterly revenue grew 2.8 per cent sequentially to Rs 38,994 crore, according to a regulatory filing.

While its revenue was in tandem with analysts' estimates, its profit fell short of their expectations.

According to Zee Business research, Infosys was estimated to report a net profit of Rs 6,300 crore and revenue of Rs 38,400 crore for the July-September period.

The company staged a strong performance on the operational front. Its earnings before interest and taxes (EBIT) increased 4.9 per cent on a quarter-on-quarter basis to Rs 8,274 crore, as against the Zee Business analysts’ expectation of Rs 8,050 crore.

Its margin—a key measure of profitability—improved by 40 basis points on a quarter-on-quarter basis to 21.2 per cent.

According to Zee Business research, the IT company’s margin for the fiscal second quarter was pegged at 21 per cent.

The IT company lowered the upper end of its full-year revenue growth forecast, in constant currency, by 100 basis points (bps) to 1.0- 2.5 per cent.

Infosys share price: Past performance

Infosys shares have gained a little more than one per cent in 2023 so far, sharply underperforming a rise of more than 17 per cent in the headline Nifty50 index.

The Nifty IT index, whose constituents include Infosys, TCS, Wipro, HCL Technologies and Tech Mahindra, has grown 19.6 per cent during this period.

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