Shares of Infosys rose nearly 1% in opening trade on Friday after the IT heavyweight announced it will release second quarter results for the July-September period on October 12, 2023. The board of directors will meet on October 11 and October 12 to declare its earnings for Q2FY24, and an interim dividend, if any, India’s second largest software company said in an exchange filing post market hours on Thursday.
“The meeting of the board of directors of the company will be held on October 11 and 12, 2023, to approve and take on record the audited consolidated financial results of the Company and its subsidiaries as per Indian Accounting Standards (INDAS) for the quarter and half year ending September 30, 2023,” the IT bellwether says in a BSE filing.
“The board will consider declaration of interim dividend, if any. The financial results and proposal for interim dividend, if any, will be presented to the board of directors on October 12, 2023 for their approval,” it adds.
The Bengaluru-based company has declared an equity dividend of ₹34 per share in the past 12 months. At the current share price, the dividend yield stood at 2.24%.
In a separate filing, Infosys informed exchanges that it has entered into a memorandum of understanding with a global company to provide enhanced digital experiences, along with modernisation and business operations services, leveraging Infosys platforms & AI solutions. The company, however, didn’t reveal the name of the client.
“The total client target spend over 15 years is estimated at $1.5 billion. This is subject to parties entering into a master agreement,” the filing notes.
Reacting to the news, Infosys shares gained as much as 0.8% to ₹1,519.30 in early trade after opening higher at ₹1,515.35 against the previous closing price of ₹1,506.75 on the BSE. The market capitalisation stood at 6.28 lakh crore at the time of reporting.
Infosys shares touched a 52-week high of ₹1,672.45 on December 1, 2022, and a 52-week low of ₹1,215.45 on April 25. 2023. The IT major has given a muted return of 5.6% in the last one year, while it climbed over 6% in the past six months. The counter added nearly 7% in a month and 3% in a week.
In the June quarter earnings report, Infosys had sharply trimmed its FY24 revenue guidance to 1.0%-3.5% from 4-7% earlier, while it retained operating margin guidance at 20%-22%.
In Q1FY24, Infosys posted a 10.9% growth in net profit at ₹5,945 crore, as compared to ₹5,362 crore in the year-ago period. The revenue from operations of the second-largest IT services company surged 10% to ₹37,933 crore, up from ₹34,470 crore in the same quarter last year. Operating profit increased 14.1% to ₹7,891 crore YoY, while the operating margin of the company rose to 20.8% from 20.1% in the year-ago period.
Infosys had 1,883 active clients as of June 30, 2023, up from 1,778 during the corresponding period last year. The company added 99 clients during the first quarter of FY24 vs 106 added during the same quarter last year.
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