New Delhi: Share prices of Infosys Ltd rose nearly 3% on Monday after the company approved a ₹ 8,260-crore share buyback and also raised its revenue growth forecast. The stock gained 2.52% to end at ₹ 700.90 a piece on the BSE. Intraday, it jumped 3.70% to ₹ 709. On NSE, shares of the company went up by 2.60% to close at ₹ 701.30.
In terms of equity volume, 1.901 million Infosys shares were traded on the BSE and over 10 million shares changed hands on the NSE during the day.
Infosys, India’s second largest firm, had on Friday reported a 30% drop in its December quarter net profit on higher expenses even as it approved a ₹ 8,260-crore share buyback—the second in less than 13 months’ time.
Its net profit slumped to ₹ 3,610 crore in October-December 2018 from ₹ 5,129 crore in the same period a year ago, the company said in a statement.
In spite of the drop in quarterly profit, the company raised its revenue growth forecast for the fiscal year ending March 2019 to 8.5-9% in constant currency terms, from 6-8% previously. Revenue from operations rose 20.3 per cent to ₹ 21,400 crore.
Infosys said it will buy back 10.32 crore shares, or 2.36%, for no more than ₹ 800 per share—17% higher than the closing price of ₹ 683.70 per share on the BSE.
Infosys also declared a special dividend of ₹ 4 per share.
Sanjeev Hota, assistant vice-president (research) at Sharekhan by BNP Paribas said, Infosys’s performance surprised positively with strong top-line growth for the quarter, though margin performance missed the mark.
“Increase in revenue guidance and better exit rate for FY19 provides comfort on double digit growth in FY20. Buyback quantum seems to be below than expectation, however, will support the stock performance in medium term," he added.