Shares of Infosys edged higher in Thursday's trade ahead of its board meeting on a proposed share buyback and quarterly earnings. The board of the IT firm is seen approving a Rs 8,000-10,000 crore share buyback. On the other hand, analysts largely sees the IT major clocking a 10-12 per cent growth in profit and a 20 per cent-plus growth in net sales.
Infosys is seen keeping its FY23 constant currency (CC) revenue guidance constant at 14-16 per cent.
At 9.16 am, the IT scrip was trading at Rs 1,432.80 on BSE, up 0.28 per cent.
A share buyback would make better use of surplus cash lying on books, said analysts. YES Securities expects the share buyback to be at significant premium to current market price. That would, the brokerage said, limit downside for Infosys stock in the near term. The scrip is down 25 per cent year-to-date.
Read More: Infosys Q2 preview: Profit may rise 10-12%; Rs 8,000-10,000 cr share buyback likely
PhillipCapital sees Infosys profit at Rs 5,959 crore in September quarter, up 9.9 per cent YoY. It sees sales for the IT firm rising 24.7 per cent to Rs 36,919.70 crore.
Nirmal Bang Institutional Equities sees Infosys logging 11.8 per cent YoY (up 13.1 per cent QoQ) rise in net profit at Rs 6,063.40 crore. Axis Securities and Emkay Global sees Infosys profit at Rs 6,008 crore and 6,010.80 crore, respectively. Their sales projections for Infosys is also quite close at
Rs 36,520-Rs 36,527 crore. Ebit margin is seen expanding 60-75 basis points sequentially.
Edelweiss said investors may watch out for total contract value (TCV) for the quarter, the deal momentum and also the commentary by segments, particularly on retail, financial services and communication and supply-side pressure. Infosys is expected to maintain its revenue and growth guidance for FY23.