IT major Infosys on Tuesday surpassed ITC and ONGC to become the fifth most valuable company by way of market capitalisation after its shares jumped more than 12%. Infosys’ market cap surged Rs 25,438 crore on Thursday to Rs 2.55 lakh crore, BSE data showed.
Infosys on Thursday reported a 5% increase in first quarter consolidated net income to R3,030 crore – in line with Street estimates. Sales for three months ending June 2015 grew 12% to R14,354 crore, beating analyst estimates of R14,000-14,100 crore.
Shares opened with a huge upside and clocked double digit gains in the first hour of trade, before ending at R1,112.65, up 11.05% from the previous close. Intraday, the stock jumped 12.56% on the BSE – the biggest single-day gain since January 2013. In contrast, the Sensex ended down 0.84% at 28,182.14.
More than 2.05 crore shares were traded on BSE and NSE, up 9.12 times its 5-day average volume of 22.54 lakh shares and up 6.55 times its 30-day average volume of 31.40 lakh shares, as CEO Vishal Sikka asserted that the company will lead industry growth and achieve its FY16 revenue guidance.
Sales for 12 months starting April 2015 will climb 7.2-9.2% in US dollar terms, Infosys guided. That compares with an April forecast for growth of 6.2-8.2%.
The rupee’s 5.4% drop against the dollar in the 12 months through June also boosted revenue as the company gets more than half its sales from clients in North America. The company’s adoption of innovation is “starting to bear fruit in large deal wins and in the growth of large clients,” Sikka said in the statement. “This gives us good momentum for the rest of the year.”
Infosys, which added 79 clients last quarter, won contracts from companies including UK Department store chain House of Fraser and Sharjah Islamic Bank, based in the United Arab Emirates. The software provider said it won six deals each worth more than $50 million in total contract value.