INFOSYS ANNOUNCED ITS QUARTER 2 RESULTS FOR FY 2023; ANNOUNCED INTERIM DIVIDEND AND BUYBACK

                                    

Infosys which is India's second largest Information Technology Company today announced its Quarter 2 results for the Quarter ended September 30, 2022.  

The result was announced amidst the IT sector already facing tremendous price correction throughout its breadth. Some of the important takes from the result of Infosys is summarized below.

Some takes from today's Infosys results are as under:

  • Declared Interim Dividend of Rs 16.50 each share; 
  • Record date for interim Dividend being 28.10.2022 and Payment date fixed at 10.11.2022.
  • 18.8 % Year on Year Revenue growth;
  • Operating Profit at 21.5 %.
  • 23.4 % Revenue Growth in Q2 of 2023 compared to Q2 of 2022.
  • Rs 6,021 crores net consolidated profit for the Quarter ended on 30th September 2022 which is up by 11.1 % from the same Quarter of previous year. 
  • Company further declared that it will BUYBACK shares worth Rs 9,300 Crores from Open Market with the upper price band being Rs 1850/-. 

The results appears to be quite satisfactory especially in the present challenging situation. The news of continuous growth in revenue and growth in overall profit is a positive sign. 

Company has also declared that it has been able to control the attrition rate of the employees. 

The announcement of interim dividend and huge buyback somewhere or the other reflects the company's intent to pass on the profit part to its shareholders. It also reflects that the company is cash rich and is confident enough to give a major portion of the profits to its shareholders also. 

At present prices the Dividend Yield of the company is around 2.18 %.  Today the price of the stock closed at around Rs 1422 and results were announced post market hour so it would really be interesting to see how the prices behave tomorrow and thereafter.

Overall, this really appears to be a good news for the investors and the chances of the stock prices moving up in the near future is bright. However since we have recently witnessed that even after huge Buyback by TCS the bigger IT Giant, its stock prices tanked even more than Rs 1500 from the Buyback price of Rs 4500. So it would really be interesting to see how the things move after the results of Infosys and the Buyback news.

I think one factor which favours the case of Infosys is that it is not in overbought region and is mostly at its support levels in lower price band whereas when TCS announced it's Buyback the stock was already trading at its all time high and after that the whole of IT sector shaw a sharp price correction. However, since FIIs are presently in sell mode, I think some pressure would remain on price front as every rise in price could be seen as an opportunity to trigger some fresh sell of or profit booking.  

More or less Indian stock market had recently shown its resilient towards heavy FIIs (Foreign Institutional Investors) selling pressure which appears to be mostly because of inclusion of crores and crores of new retailers in the stock market during and post Covid era. There is huge inflow of money from Mutual Funds through SIP (Systematic Investment Plan). Undoubtedly this has been proving as good shock absorber against severe FIIS selling.    


NASDAQ 100 which is primarily an index comprising of Technological Sector in US is also in a downward trend and had already corrected more than 40 % from its all time high. US is going through inflation above 9% which was not seen in recent history. The same is a result of enormous Dollar printing during the lockdown in Covid time. The tightening of monetary policy and increase of interest rates to somehow control the draconian inflation, had resulted into severe erosion of wealth in the stock market in U.S. 



FED is also increasing the interest rates causing tremendous pressure in stock market especially in US and also creating a pressure on international markets as FIIs are on a selling spree and they are taking out money from markets in order to deposit in safe fixed deposit schemes because of rising interest rates. 

In these negative scenario, the upcoming of good results from the Nifty 50 giants like Infosys and the announcement of good interim dividend and Buyback is really something to cherish of.  

[Read 20 Reasons why Retailers fail to make money in Stock Market  ]




[Disclaimer: The aforesaid views and experience are personal to the author and should not be taken as any professional advice. Nor it should be taken as any recommendation. The author is not a SEBI registered advisor. Further the author shall not be liable for any errors or omissions in the information and viewers are advised to check the same from concerned official sites or offices. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company or individual. We always respect the dignity and feelings of any religion, ethnic, individual, groups, company etc.]

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