Infosys Q4FY21 missed the earnings estimates of analysts and that was reason enough for the stock to fall. The stock opened over 3% lower at Rs.1354.75 and slipped further by over 5.5% to hit an intraday low at Rs.1320.35. It has recouped from there but remains in the red at Rs.1350 levels.
Its consolidated revenue from operations increased by 1.5% (QoQ) to Rs 26,311 crore while net profit fell 2% t Rs.5078 crore. EBIT for the quarter was down 2% at Rs.6440 crore and margins fell from 25.4% to 24.5%. The reason - wage hikes and cross-currency headwinds.
The good part – it maintained its constant currency revenue growth target for FY22 at 12-14% and also retained its EBIT margin forecast at 22-24%.
Apart from declaring a Rs.15/share final dividend for FY21 (an earlier interim dividend was of Rs.12/share), the company stated that it will buyback shares worth Rs 9,200 crore at a price not exceeding Rs 1,750 a share.