Infosys shareholders gain ₹50,000 crore in an hour as shares see new heights

IT Giant Infosys|

IT Giant Infosys propelled its stock to a record peak, contributing over 50,000 crore to the wealth of its investors in the first hour of BSE trading. Infosys recorded a rise of 11.4 percent in quarterly net profits on Wednesday, securing big customer deals following coronavirus-led disturbances. Infosys shares rose by as much as 15 percent to ₹952 on BSE.

The company reported a net profit of 4,233 crore for the quarter ended 30 June, an increase of 3,798 crore for the same duration registered a year earlier. Infosys said it signed deals worth $1.74 billion during the period, higher than the $1.65 billion recorded in the previous quarter.

Infosys has benefited from the depreciation of the Indian rupee against the US dollar.

Revenues increased to 23,665 crore, a rise of 8.5 percent, the company said.

Analysts said the firm’s ability to sign lucrative agreements made it possible to navigate the quarter with relative ease.

The organization forecasts revenues to be flat or to rise by 2 percent on a constant currency basis and operating margins of 21-23 percent for 2020-21. That contrasts with revenue growth averaging 9 percent or more in the past two years on a constant currency basis. The organization did not have any forecasts in the March period, noting the uncertainties associated with COVID-19.

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