Infosys Q2 net rises 11% to ₹6,021 cr; plans ₹9,300 cr share buyback

IT services major Infosys on Thursday (October 13) posted an 11 per cent year-on-year (YoY) rise in consolidated net profit to ₹6,021 crore for the second quarter ended September 2022, and also announced a share buyback worth ₹9,300 crore.

The infotech major’s net profit stood at ₹5,421 crore in the same period a year ago. It will also pay an interim dividend totalling ₹6,940 crore to the shareholders

Also read: TCS profit up, but IT sector staring at tough export markets, rising attrition

According to a regulatory filing, the revenue rose 23.4 per cent YoY  to ₹36,538 crore in the second quarter of the current fiscal, against ₹29,602 crore in the year-ago period.

Share buyback

Infosys has also announced a share buyback worth ₹9,300 crore, under which the price will not exceed ₹1,850 per equity share. The price is 30 per cent higher than the company’s closing price of ₹1,419.7 apiece on Thursday.

The company revised its FY23 revenue guidance to 15-16 per cent growth, tighter than the 14-16 per cent it had projected earlier. The operating margin guidance has been revised to 21-22 per cent, the company said in a statement.

Analysis: Hybrid work here to stay, but in India, there are some unique issues

“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 of Infosys.

While concerns around the economic outlook persist, he said, the 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,” Parekh added.

With agency inputs