Infosys shares erase opening gains; close over 2 pc lower

Infosys on Wednesday posted a 20.5 per cent rise its net profit to Rs 4,845 crore for the September 2020 quarter, mainly helped by large deals, prompting the IT services major to raise its revenue growth forecast to 2-3 per cent for 2020-21. Infosys, which had clocked a net profit of Rs 4,019 crore in the year-ago period, said its basic EPS (earnings per share) has increased 20.8 per cent year-on-year to Rs 11.42.

Shares of Infosys on Thursday erased its opening gains and closed over 2 percent lower on the emergence of profit-booking a day after the company announced its September quarter earnings. Even after opening with over 4 percent gains and hitting a record high of Rs 1,185, the stock failed to maintain the momentum and dipped 2.47 percent to close at Rs 1,108 on the BSE. During the day, it tanked 3.79 percent to Rs 1,093.

After a similar movement, it dropped 2.09 percent to close at Rs 1,113.25 on the National Stock Exchange (NSE). The company's market valuation declined Rs 11,939.19 crore to Rs 4,71,942.81 crore on the BSE.

In traded volume terms, 26.64 lakh shares were traded on the BSE and 4.42 crore shares on the NSE during the day. Infosys on Wednesday posted a 20.5 percent rise in its net profit to Rs 4,845 crore for the September 2020 quarter, mainly helped by large deals, prompting the IT services major to raise its revenue growth forecast to 2-3 percent for 2020-21.

Infosys, which had clocked a net profit of Rs 4,019 crore in the year-ago period, said its basic EPS (earnings per share) has increased 20.8 percent year-on-year to Rs 11.42. The Bengaluru-based company's revenues grew 8.5 percent to Rs 24,570 crore in the quarter under review, from Rs 22,629 crore in the year-ago period.

After its better-than-expected performance, Infosys revised its guidance upwards to 2-3 percent growth for FY21 in constant currency terms from its previous outlook of up to 2 percent growth.