Infosys Ltd, one of the oldest and largest software India n firms, became the fourth Indian company that has crossed ₹7 trillion in the market. Software giant saw a surge of 71% in its share value during the last 12 months.
Infosys is the Fourth Rs 7 Trillion Indian Firm
On Tuesday, Infosys Ltd’s share value touch an all-time high value of ₹1644.05 on the Bombay Stock Exchange to touch the magical Rs 7.01 trillion market cap. Compared to Monday, the share value was surged by 0.7% to Rs 1644. In 2021, share value recorded a growth of 31% within seven months.
Reliance Industries Ltd, Tata Consultancy Services Ltd, and HDFC Bank Ltd are the other three Indian firms that have crossed the Rs 7 trillion marks in terms of market capitalization.
The stock has been gaining since the firm increased its fiscal year 2022 revenue guidance to 14-16% on a constant currency basis from 12-14% earlier. The firm maintained its operating margins guidance at 22-24%.
The software firm recorded revenue growth of 18% to ₹27896 crore in Q1 of FY2022, aided by strong growth across segments. EBITDA grew 21.4% year on year due to an increase in revenue and a decline in employee expense. EBITDA margin expanded 70bps year on year to 26.6%. The company also saw a surge in its net profit by 22.7% to Rs 5195 crore compared with the same quarter in the last fiscal year. Net profit also increased to Rs. 5,195 crore up 22.7% from a year ago.
What Financial Firms Say about Infosys?
Talking about the exponential growth in Infosys shares and the reasons behind it, Edelweiss Securities in a note to its investors said, “Infosys has posted stellar Q1FY22 numbers. Management highlighted that cloud is becoming a strategic priority for all industries. We believe Infosys, given its strong presence in the cloud and digital transformation will remain a major beneficiary of this tech-upcycle which is going to last for three-four years.”
During the first quarter of FY2022, the software giant signed 22 deals worth $2.6 billion. Nine of them belong to the financial sector, while four are from retail & energy, utilities, resources, and services, two in manufacturing, and one each in communications, high-tech & life sciences segments.
In a detailed report to its investors, JP Morgan analyzed the performance of Infosys. It said, “Infosys has emerged as a clear winner in accelerating adoption of IT megatrends and large cost-takeout projects catalyzed by COVID-19. Infosys has outperformed TCS on YY growth for 12 quarters in a row in June 2021. While this benefits all firms, its performance remains a standout and reiterates superior execution and recovering competitiveness that merits a re-rating, in our view.”