Infosys Ltd, the leading provider of IT services in the nation, released financial results for the quarter ended March 31, 2023 or (Q4FY23). The company said its revenue from operations grew by 16 percent to ₹37,441 during Q4FY23 crore as against ₹32,276 crore in the same quarter last fiscal. Constant currency (CC) terms revenue grew by 8.8% YoY and fell by 3.20% QoQ.
Infosys reported a consolidated net profit of ₹6,128 crore on April 13—nearly 8% more than the same quarter a year earlier when compared to a net profit of ₹5,696 crore.
A final dividend of ₹17.50 per equity share has been decided by the Infosys board for the fiscal year that ended on March 31, 2023. “The 42nd Annual General Meeting of the members of the Company will be held on Wednesday, June 28, 2023. The record date for the purposes of the Annual General Meeting and payment of final dividend is June 2, 2023. The dividend will be paid on July 3, 2023,” said Infosys in a stock exchange filing.
Infosys has announced an equity dividend of 620.00% at a face value of ₹5 equaling ₹31 per share for the fiscal year that ended on March 31, 2022, or FY22. The dividend yield at the current share price of ₹1,383.40 is 2.23%. The company has a solid track record of dividend declarations during the past five years. According to Trendlyne's statistics, Infosys Ltd. has issued 47 dividends since October 25, 2000. Infosys Ltd. announced an equity dividend in the amount of ₹32.50 per share over the past 12 months. This generates a dividend yield at the current share price of ₹1,383.40 of 2.34%.
The shares of Infosys closed today on the NSE at ₹1,383.40 apiece level, down by 3.14% from the previous close of ₹1,428.30.
Commenting on the technical outlook of the stock post Q4FY23 earnings, Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform said "The Infosys stock has formed a double bottom pattern near a very strong support zone recently and is currently bouncing up from that level. The momentum indicators on the weekly chart have given a bullish signal just before its results through a positive divergence, and the stock is also bouncing from a demand zone area. Keeping this slightly Positive to sideways outlook in mind, one can plan the following Options strategy on the stock :
Cross Calendar Spread on Infosys:
(+)Buy the 1460 CE of May 27th Expiry at CMP
(-)Sell the 1500 CE of April 25th Expiry at CMP
Possible Evolve :
If the prices of Infosys go down, which is contrary to what we expect, one can roll down the April sold call units as well as short fresh May call units to bring the entire trade to breakeven or atleast bring down the debit of the trade.
i)Keep in mind that the strike of the new short units should not go below the 1460ce strike. Ideally it should be the 1480ce strike or higher only.
ii)The maximum target in this trade can be higher and at Rs.6000, but one can exit the position depending upon their individual risk appetites as the capital involved in the trade is quite small."
A R Ramachandran, Co-founder & Trainer-Tips2trades said "Below average Q4FY23 results in terms of QoQ comparison in both revenue and profit growth coupled with a lower revision in terms of FY24 guidance could lead to Infosys stock price staying subdued in the near term. 1435 is a strong resistance on the Daily charts and investors should buy only if this resistance is broken on a Daily basis. Supports will be at 1366 & 1324 on the Daily charts."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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