Sensex, Nifty dips 0.26%; IT stocks outperform
IndusInd was the top laggard in the Sensex pack, shedding 3 per cent, followed by HDFC, ONGC, Kotak Mahindra, Bajaj Finance, Maruti Suzuki and Bharti Airtel.
Shares of Infosys on Thursday declined over 5 per cent on profit-booking after its March 2021 quarter earnings missed market expectations.
The stock dipped 5.59 per cent to Rs 1,320.35 on BSE.
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At NSE, it tumbled 5.52 per cent to Rs 1,320.
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“Infosys reported a muted set of Q4 FY21 numbers. FY22 revenue growth (12-14 per cent) and margin (22-24 per cent) guidance were lower than our expectations of 13-15 per cent revenue growth and 23-24 per cent margin,” according to a report by Edelweiss Securities.
IT services major Infosys on Wednesday posted a 17.5 per cent rise in net profit to Rs 5,076 crore for the March quarter, and announced up to Rs 9,200 crore buyback offer at a maximum price of Rs 1,750 per share.
The Bengaluru-based company’s net profit (after minority interest) was Rs 4,321 crore in the January-March 2020 quarter.
Its revenue grew 13.1 per cent to Rs 26,311 crore in the March 2021 quarter from Rs 23,267 crore in the year-ago period, Infosys said in a regulatory filing.
The company’s FY21 net profit was up 16.6 per cent at Rs 19,351 crore, while revenue rose by 10.7 per cent to Rs 1,00,472 crore compared to the previous fiscal.
Infosys expects FY22 revenue to grow 12-14 per cent in constant currency.
The Board has recommended a capital return of Rs 15,600 crore, including a final dividend of Rs 6,400 crore and open market buyback of shares of Rs 9,200 crore, it said.
The Board has recommended a final dividend of Rs 15 per equity share for the financial year ended March 31, 2021.
Equity markets were closed on Wednesday.
“In INR term, it reported revenue Rs 263.bn (up 1.5 per cent Q-o-Q), a slight miss on our estimate. It is to be noted that there was an adverse impact of INR appreciation in reported INR revenue for the quarter; and also, the revenue growth for the quarter was impacted by some time being taken in ramping up large deals,” as per a report on Infosys by YES Securities.
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