Infosys becomes fourth Indian company to reach market cap of $100 billion

Infosys, the country’s second-largest software provider, reported a consolidated net profit of ₹5,195 crore for the quarter ended June 2021 | File Photo

Infosys has become the fourth Indian company to reach a market capitalisation of $100 billion. Only Reliance Industries (market cap $140 billion), Tata Consultancy Services ($115 billion) and HDFC Bank ($100.1 billion) are currently more valuable than Infosys.

The Infosys stock was trading at 1,736.10, down 3.10, or 0.18 per cent, at 11:45 IST Tuesday. It touched a 52-week high of 1,755.60 earlier in the day.

The company also reported a 22.7 per cent year-on-year rise in its Q1 net profit, up from 4,233 crore in the same quarter last year. 

Infosys, the country’s second-largest software provider, reported a consolidated net profit of 5,195 crore for the quarter ended June 2021. This showed a 2.3 per cent sequential growth. Its revenue grew 8.5 per cent to 23,665 crore in the June quarter. The revenue was 21,803 crore in the corresponding period last fiscal.

Advertisement

Also read: Fix tax portal glitches by Sept 15: Finance ministry warns Infosys

Much of Infosys’ rapid growth over the past few years can be attributed to the traction and development it saw in areas such as cloud, customer experience and cyber security. The company had increased its full-year revenue growth forecast in constant currency. It was raised from 12-14 per cent to a range of 14-16 per cent. Infosys had previously given a revenue guidance of 12-14 per cent for FY22. It did so with an operating margin estimated at guidance of 22-24 per cent.

Also read: As COVID-19 wreaks havoc, IT firms, MNCs extend support to employees

Suyog Kulkarni, a senior research analyst at Reliance Securities, told News18: “We expect Infosys to report superior revenue growth over FY21-FY24 driven by execution focused stable management, surge in mega deals and digital acceleration. Recent efforts on refreshed offerings and vast product portfolio have helped INFY to expand its client outreach. 

“Additionally, best-in-class show on ESG front with carbon neutrality, diversity, and stronger governance standard bodes well for long-term value creation. We expect Infosys will be a key beneficiary of multi-year technology upcycle and expect company to cross Mcap valuation of US$110bn by FY24.”

Get breaking news and latest updates from India
and around the world on thefederal.com
FOLLOW US: