Infosys to consider share buyback on April 14, announce FY21 results
IT services major Infosys, in a listing with the Bombay Stock Exchange (BSE), said that its Board will consider a proposal for buyback of fully paid-up equity shares of the company. The Board will be meeting on April 14, 2021.
“The Board of the Company will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on April 14, 2021, in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018,” the statement said.
The IT services giant is also slated to hold a board meeting on April 13 and 14 to approve and take on record the consolidated financial results of the company for the quarter and year ended March 31, 2021.
The Indian IT majors will be announcing their fourth quarter and fiscal year 2020-21 results starting April 12. Infosys will be announcing its numbers on April 14.
The fourth quarter results of India’s biggest software services players is expected to be one of the strongest performance the industry has seen in the past few quarters and even years, said analysts. The growth for the quarter is being driven by acceleration in digital technologies, improved demand post COVID-19, ramp up of deal wins and migration to cloud.
With improvement is sectors such as banking and financial services and insurance, (BFSI), retail, manufacturing and healthcare, analysts are pegging the Q4 ended March 31, 2021, revenues in the range of 2-5 per cent on sequential basis, with many upbeat that the year-on-year growth will be in double digits.
TCS, will be the first to announce its numbers on April 12, the street will be looking at Infosys’ guidance for the demand trends for FY22. According to an Edelweiss Research report, Infosys may give a guidance of 13-15 per cent growth for FY22. “Infosys will be key beneficiary of: i) core transformation; ii) accelerated cloud adoption; and iii) digital adoption. Moreover, persistent market share loss of key players such as Capgemini and Cognizant will directly benefit Infosys. We believe the company would give revenue growth guidance of 13–15 per cent for FY22. We also expect Infosys to post a decline in margins of about 50bps QoQ due to wage hikes,” said Sandip Agarwal of Edelweiss Research in his report.
The company’s stock price reached a 52 week high at Rs 1,454 per share on Friday April 9. The stock price closed at Rs 1,439.8 on April 9.
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