Infosys m-cap surpasses Rs 7 trillion-mark as stock hits new high
Infosys on Tuesday joined the elite club of companies with Rs 7-trillion market capitalization (m-cap) on the BSE after its share price hit a new high of Rs 1,646.40 in the intra-day deals.
The stock of the information technology (IT) consulting & services company has outperformed the market in the past two weeks, by gaining 7 per cent, after Infosys raised its revenue growth guidance for financial year 2021-22 (FY22) buoyed by a robust deal pipeline. In comparison, the S&P BSE Sensex was up 1.5 per cent during the same period.
With an m-cap of Rs 6.993 trillion, at 11:05 am, Infosys stood at number fourth position in the overall m-cap ranking, BSE data shows. Reliance Industries is at number one position with Rs 13.10 trillion m-cap, followed by Tata Consultancy Services (TCS) with Rs 12.11 trillion m-cap and HDFC Bank with an m-cap of Rs 7.88 trillion, data shows.
While announcing its April-June quarter (Q1FY22) results on July 15, 2021, Infosys said it expects its revenue to grow by 14-16 per cent in FY22, up from the earlier estimate of 12-14 per cent. This guidance is ahead by one-percentage point increase that analysts were estimating. The company, however, maintained margin guidance at 22-24 per cent in FY22.
In Q1Fy22, large deal intake was healthy at $2.6 billion in (30 per cent new), with 22 large deals signed during the quarter. The deal pipeline remains healthy with a good mix of new and renewal deals, offering good revenue visibility.
"The company retained its FY22 EBITM guidance of 22-24 per cent, considering the impact of salary hikes (w.e.f July 2021), large deals’ transition costs and likely normalization of discretionary costs like travel, facility and other related costs. However, revenue acceleration, improving business mix, employee pyramid and role ratio, pricing in digital projects, automation and other operating efficiencies would help to negate these headwinds," analysts at Emkay Global Financial Services said in a post-Q1FY22 result update.
In a separate development, the company said, Infosys Finacle, part of EdgeVerve Systems, a wholly owned subsidiary of Infosys, and Union Bank of the Philippines (UBP), a leading bank in the Philippines, announced that the bank will migrate from an on-premise deployment to the state-of-the-art Finacle Digital Banking Solution Suite on Cloud.
Over 8 million customer accounts will be considered for migration to the new software-as-a-service (SaaS) platform. The transition will enable UnionBank to scale both its Retail and Corporate Banking operations, rapidly develop and deploy new capabilities, and deliver frictionless, personalized, and secure digital banking services to its customers, in a cost-efficient manner, it said in a press release.