Synopsis: In intra-day trading on the BSE, Infosys joined the exclusive club of companies with a market capitalization (m-cap) of Rs 7 trillion.
Infosys joined the privileged club of firms on the BSE, with a market capitalization (MCap) of Rs 7 trillion after its share price touched a new high of Rs 1,646.40 in intra-day deals on Tuesday.
The stock of the information technology (IT) consulting and services firm has gained 7% in the last two weeks, outperforming the market after Infosys boosted its revenue growth outlook for the fiscal year 2021-22 (FY22), boosted by a strong transaction pipeline. During the same time frame, the S&P BSE Sensex gained 1.5%.
According to BSE data, Infosys was fourth in the overall m-cap ranking at 11:05 a.m., with an m-cap of Rs 6.993 trillion. According to data, Reliance Industries ranks first with a market capitalization of Rs 13.10 trillion, followed by Tata Consultancy Services (TCS) with a market capitalization of Rs 12.11 trillion and HDFC Bank with a market capitalization of Rs 7.88 trillion.
Major deal intake was strong in Q1Fy22, totaling $2.6 billion (30% new), with 22 large deals executed throughout the quarter. The transaction pipeline is still solid, with a good balance of new and renewal deals, and revenue visibility is still good.
“The company retained its FY22 EBITM guidance of 22-24%, 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, Infosys Finacle, 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, according to the company.
The migration of over 8 million client accounts to the new software-as-a-service (SaaS) platform will be examined. According to a press statement, the shift will allow Union Bank of the Philippines (UBP) to scale both its Retail and Corporate Banking operations, develop and deploy new capabilities quickly, and provide frictionless, personalized, and secure digital banking services to its clients in a cost-effective manner.
