Infosys Ltd. (INFO) will issue free stock to shareholders after posting quarterly profit that beat analyst estimates as Indias second-largest software services company won more orders in Europe. The shares rose.
The board recommended investors get one free share for each held, Bengaluru-based Infosys said in a statement today. Net income rose 29 percent to 31 billion rupees ($507 million) in the quarter ended September, beating the 29.6 billion-rupee median of 36 analysts estimates compiled by Bloomberg.
Vishal Sikka, who took over as chief executive officer on Aug. 1, has been meeting customers and employees as part of efforts to boost sales at Infosys, which has the slowest revenue growth of Indias four biggest software providers. The company has a decent pipeline and is seeing an uptick in discretionary spending, according to comments by Chief Operating Officer U.B. Pravin Rao at an investor meeting last month.
The numbers are really positive, and the bonus is icing on the cake said Ankita Somani, analyst with Marwadi Share & Finance Ltd. in Mumbai. They want to please investors.
Shares of Infosys surged the most in four months on an intraday basis, climbing 5.2 percent to 3,836.55 rupees as of 9:36 a.m. in Mumbai trading.
Vishal Sikka, Chief Executive Officer of Infosys Ltd. Close
Vishal Sikka, Chief Executive Officer of Infosys Ltd.
Close
Vishal Sikka, Chief Executive Officer of Infosys Ltd.
Second-quarter sales increased 2.9 percent to 133.4 billion rupees. That compares with the 133.1 billion-rupee median of 39 analysts estimates compiled by Bloomberg.
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Infosys to Issue Free Stock as Profit Beats Estimates