Infosys hits new high

Infosys had a fantastic Q2FY21 under the current circumstances. Beating all expectations and estimations, the company posted a 14% (QoQ) rise in consolidated net profit at Rs.4858 crore on a 4% rise in revenue at Rs.24,570 crore.

Dollar revenue was up 6% at $3312 million.

The company’s EBIT came in at Rs.6228 crore, up 16.1% and margins showed a smart jump from 22.7% to 25.3%.

The most enthusing part – it revised its guidance upwards. It expects revenue growth to rise 2 to 3% in constant currency for FY21 v/s the earlier given guidance of 0 to 2% increase. It hiked its operating margin guidance for FY21 upwards from 21 to 23% to 23 to 24%.

This optimism stems from its huge order intake – during the quarter it signed deals worth $3.15 billion – the highest ever v/s $1.74 billion in Q1.

At the end of Q2FY21, its total employee headcount was at 2,40,208 v/s 2,39,233 in Q1 and 2,36,486 on YoY. The company is giving 100% variable pay along with a special incentive for Q2. Additionally, it is also rolling out salary increases and promotions across all levels effective 1st Jan, 2021.

The company declared an interim dividend of Rs 12 per equity share. 26th Oct is the Record Date and payout will be done on 11th Nov.

Yesterday, the stock had gone up shy of a meagre Rs.1.15 from its 52-week high of Rs.1165.85 and today, it opened itself at Rs.1184 and hit a new high at Rs.1185. Profit booking at these levels has now pushed the stock into the red, trading at Rs.1131 currently.