Infosys Q2 net profit jumps 11% to Rs 6,021 crore; announces share buyback of Rs 9,300 crore

NEW DELHI: IT service major Infosys on Thursday reported 11% jump in consolidated net profit for the second quarter ended September 30.
The company posted a profit of Rs 6,021 crore as against a profit of Rs 5,421 crore in same period last fiscal.
According to a regulatory filing, the revenue rose 23.4% year-on-year to Rs 36,538 crore in the second quarter of the current fiscal. The same stood at Rs 29,602 crore in the year-ago period.
"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.
Here are key takeaways from the results:
* FY23 revenue view tightened
The country's No.2 IT services company by revenue now expects 15%-16% revenue growth in the fiscal year ending March, compared with the 14%-16% rise it had forecast in July.
"We continue to see good traction (in terms of deal wins)," said Salil Parekh, chief executive officer and managing director of Infosys.
Infosys 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.
* Share buyback plan announced
The Board of Directors of the company also approved a share buyback worth Rs 9,300 crore via open market route, for a price not exceeding Rs 1,850 per equity share.
"The Board in its meeting held today approved...buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to Rs 9,300 crore (maximum buyback size, excluding buyback tax) at a price not exceeding Rs 1,850 per share (maximum buyback price), subject to shareholders' approval," the statement said.
The buyback price is 30 per cent higher than the scrip closing price of Rs 1,419.7 apiece on Thursday.
* Interim dividend declared
The board has also declared an interim dividend of Rs 16.50 per share, an increase of 10 per cent over FY22 interim dividend.
The total amount of interim dividend will be about Rs 6,940 crore, Infosys said in a statement.
(With inputs from agencies)