Infosys Ltd Share Price – NSE  /  BSE

IT - Software, Mid Cap

The domestic equity benchmarks pared all losses and traded with decent gains in afternoon trade. The Nifty traded near the 22,050 mark after hitting the day's low of 21,777.65 in early trade. Metal, private bank and financial services shares advanced while realty, media and pharma stocks declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 226.24 points or 0.30% to 72,696.41. The Nifty 50 index added 50.25 points or 0.23% to 22,046.10.

In the broader market, the S&P BSE Mid-Cap index shed 0.49% while the S&P BSE Small-Cap index gained 0.13%.

The market breadth was negative. On the BSE, 1,648 shares rose and 2,025 shares fell. A total of 147 shares were unchanged.

Politics:

India is gearing up for its election in 2024. The BJP is looking to consolidate its grip on power as it aims for a historic third term while a band of opposition parties, including the Congress, has formed a united front called INDIA to deny PM Modi another victory. The elections will occur in 7 phases, starting on 19 April and ending on 1 June. The Lok Sabha elections 2024 results will declared on 4 June.

Gainers & Losers:

Grasim Industries (up 1.77%), HDFC Bank (up 1.72%), ITC (up 1.52%), Mahindra & Mahindra (up 1.44%) and Apollo Hospitals Enterprise (up 1.41%) were major Nifty gainers.

Bajaj Auto (down 2.77%), HCL Technologies (down 1.38%), Tata Motors (down 1.32%), Nestle India (down 1.23%) and Bharat Petroleum Corporation (down 1.20%) were major Nifty losers.

Stocks in Spotlight:

Infosys shed 0.81%. The IT major's consolidated net profit jumped 30.51% to Rs 7,969 crore in Q4 FY24 from Rs 6,106 crore in Q3 FY24. Revenue from operations declined 2.31% to Rs 37,923 crore in Q4 FY24 as compared with Rs 38,821 crore in Q3 FY24. In terms of guidance, the company has revised its FY25 revenue guidance to 1%-3% in constant currency and operating margin guidance at 20%-22%.

Bajaj Auto slipped 2.77%. The auto major’s standalone net profit jumped 35.11% to Rs 1,936 crore on 28.97% rise in revenue from operations to Rs 11,484.68 crore in Q4 FY24 over Q4 FY23.

ICICI Securities rose 0.61%. The broking firm’s consolidated net profit zoomed 104.3% to Rs 536.53 crore in Q4 FY24 as against Rs 262.68 crore recorded in Q4 FY23. Total income was at Rs 1,544.44 crore in the quarter ended 31 March 2024, registering a growth of 74.5% year on year (YoY).

ITC added 1.52% after the company announced that its wholly owned subsidiary, ITC Infotech India has entered into Share Purchase Agreement to acquire 100% stake in Blazeclan Technologies for total consideration of Rs 485 crore.

Network18 Media & Investments declined 2.58% after the company’s consolidated net loss widened to Rs 206.92 crore in Q4 FY24 as against a Rs 35.19 crore recorded in Q4 FY23. Revenue from operations climbed 63.06% year on year to Rs 2,419.28 crore in the quarter ended 31 March 2024.

Global Markets:

European and Asian stocks declined on Friday as reports of Israeli strikes on Iran further ramped up concerns over worsening geopolitical conditions in the Middle East. Israel, early Friday morning local time, launched missiles in a retaliatory strike against Iran, as per reports. The missile launches follow Iran's attack last Saturday.

U.S. stocks closed mixed on Thursday in another jittery day of trade, as investors focused on rising bond yields and uncertain oil prices.

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Infosys announced that the 43rd Annual General Meeting (AGM) of the company will be held on 26 June 2024.

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Revenue from operations declined 2.31% to Rs 37,923 crore in Q4 FY24 as compared with Rs 38,821 crore in Q3 FY24.

Year on year basis, the company’s net profit jumped 30.01% while revenues increase 1.29% as compared with Q4 FY23.

During the quarter, operating profit was Rs 7,621 crore, down 4.3% QoQ and 3.2% YoY. Operating margin for the quarter was 20.1%, a sequential decrease of 40 bps.

In dollar terms, the IT firm reported revenues of $4,564 million (down 2.1% QoQ and up 0.2% YoY) for the quarter ended 31 March 2024.

In constant currency terms, the company's revenue has declined by 2.2% QoQ and YoY growth remained flat during the period under review.

In Q4 FY24, free cash flow (FCF) was Rs 7,032 crore, registering a YoY growth of 20.33%.

The total contract value (TCV) of large deal wins was $4.5 billion in Q4 FY24, with net new of 44%.

The company had 1,882 active clients as of 31 March 2024 as compared with 1,872 active clients as of 31 December 2023 and 1,872 as on 31 March 2023.

Total headcount as on 31 March 2024 was 3,17,240. Last twelve months IT services attrition rate slipped to 12.6% as of 31 March 2024 as compared with 12.9% as of 31 December 2023 and 20.9% as on 31 March 2023.

In terms of guidance, the company has revised its FY25 revenue guidance to 1%-3% in constant currency and operating margin guidance at 20%-22%.

On FY24 basis, the company’s net profit increased 8.8% to Rs 26,248 crore in FY24 as compared with Rs 24,108 crore in FY23. Revenue from operations rose 4.7% YoY to Rs 1,53,670 crore in FY24.

Salil Parekh, CEO and MD, said, “We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support.”

Jayesh Sanghrajka, CFO, said, “Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with the objective of giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual Dividend Per Share. Operating margin expansion in the medium-term and improving cash generation continue to remain our priorities underpinned by early success in Project Maximus.”

Meanwhile, the company’s board has a signed definitive agreement to acquire in-tech, a leading Engineering R&D services provider focused on German automotive industry. This strategic investment further strengthens the company’s engineering R&D capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey.

The company will acquire 100% stake in in-Tech for total consideration of EUR 450 million, includes upfront and earnouts, excluding management incentives, and retention bonus. The said acquisition is expected to close during first half of fiscal year 2025.

Further, the company's board has declared dividend of Rs 20 per equity share for financial year ended 31 March 2024 and additionally a special dividend of Rs 8 per equity share.

Furthermore, the board has also approved the capital allocation policy for the next 5 years from FY25 – FY29 after taking into consideration the strategic and operational cash requirements, “Effective from financial year 2025, the company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any.”

Infosys is a global leader in next-generation digital services and consulting.

The scrip declined 1.80% to Rs 1,395.05 on the BSE.

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The key equity benchmarks traded with moderate losses in early trade. The Nifty traded below the 22,000 level. All the sectoral indices were traded in the red with PSU bank, IT and media stocks decline the most.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was down 460.55 points or 0.64% to 72,028.44. The Nifty 50 index dropped 145.30 points or 0.66% to 21,850.55.

In the broader market, the S&P BSE Mid-Cap index dropped 1.09% while the S&P BSE Small-Cap index fell 0.99%.

The market breadth was weak. On the BSE, 671 shares rose and 2,114 shares fell. A total of 90 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,260.33 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,285.52 crore in the Indian equity market on 18 April, provisional data showed.

Politics:

India is gearing up for its election in 2024. The BJP is looking to consolidate its grip on power as it aims for a historic third term while a band of opposition parties, including the Congress, has formed a united front called INDIA to deny PM Modi another victory. The elections will occur in 7 phases, starting on 19 April and ending on 1 June. The Lok Sabha elections 2024 results will declared on 4 June.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.54% to 7.219 from previous close of 7.180.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5250, compared with its close of 83.5100 during the previous trading session.

MCX Gold futures for 3 May 2024 rose 0.35% to Rs 73,271.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 106.20.

The United States 10-year bond yield declined 2.07% to 4.553.

In the commodities market, Brent crude for June 2024 settlement rose $ 1.73 or 1.99% to $88.84 a barrel.

Stocks in Spotlight:

Infosys declined 2.22%. The IT major's consolidated net profit jumped 30.51% to Rs 7,969 crore in Q4 FY24 from Rs 6,106 crore in Q3 FY24. Revenue from operations declined 2.31% to Rs 37,923 crore in Q4 FY24 as compared with Rs 38,821 crore in Q3 FY24. In terms of guidance, the company has revised its FY25 revenue guidance to 1%-3% in constant currency and operating margin guidance at 20%-22%.

Bajaj Auto slipped 2.14%. The auto major’s standalone net profit jumped 35.11% to Rs 1,936 crore on 28.97% rise in revenue from operations to Rs 11,484.68 crore in Q4 FY24 over Q4 FY23.

Indus Towers fell 0.86%. NTPC Green Energy Limited (NGEL) and Indus Towers signed a Memorandum of Understanding (MoU), to address the need for pacing green energy objectives and the GoI’s efforts towards carbon neutral economy. The MoU is to explore a joint development of grid connected Renewable Energy based Power Projects including Solar, Wind, Energy storage etc. and/or solutions thereof.

Global Market:

Asian stocks are trading lower on Friday as reports of Israeli strikes on Iran further ramped up concerns over worsening geopolitical conditions in the Middle East. Israel, early Friday morning local time, launched missiles in a retaliatory strike against Iran, as per reports. The missile launches follow Iran's attack last Saturday.

U.S. stocks closed mixed on Thursday in another jittery day of trade, as investors focused on rising bond yields and uncertain oil prices.

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