Infosys hit a market capitalisation of $100 billion on Tuesday. It is the fourth company in India to hit that mark. The other three companies that hit the mark were Tata Consultancy Services (TCS), Reliance Industries Limited as well as HDFC Bank. Reliance Industries hit a market capitalisation of $140 billion, while TCS saw a market cap of $115 billion. HDFC Bank also crossed the $100-billion-mark with a price of $100.1 billion.
The Infosys stock was trading at Rs 1,736.10, down Rs 3.10, or 0.18 per cent at 1145 hours. Earlier it has touched a 52-week high of Rs 1,755.60 on Tuesday. It has touched an intraday high of Rs 1,755.60 and an intraday low of Rs 1,732.05.
The company also reported a 22.7 per cent year-on-year rise in its Q1 net profit, which was up from its previous Rs 4,233 crore for the same quarter last year. Being the country’s second-largest software provider, Infosys reported a consolidated net profit of Rs 5,195 crore for the quarter ended June 2021. This showed a 2.3 per cent sequential growth. The revenue of the second-largest IT company of India, grew 8.5 per cent to Rs 23,665 crore in the June quarter. The revenue was Rs 21,803 crore in the corresponding period last fiscal.
Much of Infosys’ rapid growth over the past few years can be attributed to the traction and development it saw in areas such as cloud, customer experience and cyber security to name a few. The company had increased its full-year revenue growth forecast in constant currency. It was raised from 12 to 14 per cent to a range of 14 to 16 per cent. Infosys had previously given a revenue guidance of 12 to 14 per cent for FY22. It did so with an operating margin in mind that was estimated at guidance of 22 to 24 per cent.
It should be noted that on a global scale, many businesses were severely impacted by the Covid-19 pandemic. The IT sector on the other hand only saw some disruption. Having said that, March was the first full quarter that factored in the disruptions of the lockdown. Infosys expects to grow its revenue by 2 per cent for FY21 in constant currency terms.
Speaking on the stock price of Infosys and the growth it had seen, Suyog Kulkarni, a senior research analyst at Reliance Securities said, “We expect Infosys to report superior revenue growth over FY21-FY24 driven by execution focused stable management, surge in mega deals and digital acceleration. Recent efforts on refreshed offerings and vast product portfolio have helped INFY to expand its client outreach. Additionally, best-in-class show on ESG front with carbon neutrality, diversity, and stronger governance standard bodes well for long term value creation. We expect Infosys will be a key beneficiary of multi-year technology upcycle and expect company to cross Mcap valuation of US$110bn by FY24.”
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