Infosys to announce second quarter results on October 13

Infosys

IT behemoth Infosys on October 3, in an exchange filing, informed that it will announce its financial result for the second quarter of the current fiscal (Q2FY23) i.e July to September period, on October 13.

Speculations are rife that the Salil Parekh-led company may also announce share buyback along with the Q2 earnings.

“Infosys could announce a buyback along with its Q2FY23 results,” Jefferies said in an earnings preview report. The broker did not comment on the expected size or pricing of the issue.

The brokerage said it expects Q2FY23 revenue growth for the company to be strong at 4 percent QoQ, driven by deal ramp-ups and seasonal strength.

Buyback is the most tax-efficient way to distribute cash to shareholders. It is also used by some companies to arrest share price fall as it attracts more investors. Infosys is among the scrips that have seen selling pressure during the entire calendar year.

In the last five years, the company has conducted three buybacks. The largest one - worth Rs 13,000 crore was launched in November 2017, followed by Rs 8,260 crore issue in March 2019 and Rs 9,200 crore issue in June 2021.

Shares of Infosys hit a 16-month low on September 22. The stock was Rs 1,360 a share on this day - a level last seen on May 25, 2021 and fell as much as 0.8 percent.

In the previous quarter (Q1FY23), the IT services major reported a consolidated net profit of Rs 5,360 crore, up 3.2 percent year-on-year from Rs 5,195 crore recorded in Q1FY22. Sequentially, the profit declined 5.7 percent in the said quarter as against a profit of Rs 5,686 crore in Q4FY22.
The profit had missed the estimates of a poll conducted by Moneycontrol.com, which had forecast a growth of 5.5 – 9.5 percent in consolidated net profit.

In the year-ago period (Q2FY22), Infosys had posted a consolidated profit of Rs 5,421 crore. Its consolidated revenue stood at Rs 29,602 crore during the quarter.

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