Infosys Q2 net profit up 11% to ₹6,021 crore; to buyback shares worth ₹9,300 crore

Infosys on Thursday posted an 11% year-on-year rise in consolidated net profit to ₹6,021 crore for the September quarter and also announced a share buyback programme worth ₹9,300 crore.

The IT major will also pay an interim dividend totalling ₹6,940 crore to the shareholders.

The net profit of India’s second largest IT services company stood at ₹5,421 crore in the same period a year ago.

According to a regulatory filing, the revenue rose 23.4% year-on-year to ₹36,538 crore in the second quarter of the current fiscal. The same stood at ₹29,602 crore in the year-ago period.

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

The company revised its FY23 revenue guidance to 15-16% growth, tighter than 14-16% it had projected earlier.

The operating margin guidance has been revised to 21-22%, the company said in a statement.

“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”, Salil Parekh, CEO and MD of Infosys, said.

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% for FY 23”, Mr. Parekh added.