Infosys shares surged over 7 per cent in early trading on Friday, contributing Rs 42,821.36 crore to its market valuation following the company's December quarter earnings, which met market expectations.
The stock rose by 7.15 per cent to Rs 1,604.90 on the BSE, and at the NSE, it climbed 7.14 per cent to Rs 1,601. The market capitalization (mcap) of the IT services firm increased by Rs 42,821.36 crore, reaching Rs 6,63,303.78 crore in early trade.
In the broader equity market, the 30-share BSE Sensex saw a gain of 557.53 points at 72,278.71, and the Nifty rose by 158.80 points to 21,806.70.
Financial results
Infosys reported its earnings after market hours on Thursday. The country's second-largest IT services firm disclosed a 7.3 per cent decline in net profit for the December quarter due to sluggish demand from clients and reduced its annual sales forecast.
The company's consolidated revenue from operations increased by 1.3 per cent to Rs 38,821 crore during the third quarter of the ongoing fiscal, compared to Rs 38,318 crore a year ago.
Despite the profit decline, Infosys secured deals worth USD 3.2 billion during the quarter, including a significant deal, with 71 per cent net new wins. Infosys CEO and MD Salil Parekh noted that the company's performance in the third quarter was resilient, with the highest deal wins in the past nine quarters.
"Infosys reported broadly in-line performance for the quarter. The revenue growth was above estimates, while EBIT margin was in line with expectations," according to a report by YES Securities.
Infosys adjusted its revenue growth forecast for the fiscal year through March 2024 to an increase of 1.5-2 per cent, compared to the 1-2.5 per cent guidance given in October. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that with Infosys delivering in-line results and better-than-expected results from TCS, IT stocks are likely to see positive movement.
(With PTI inputs)
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