Shares in IT major Infosys fell as much as 3 per cent, as profit booking in the stock pushed prices lower. Also, a sharp run-up in the shares has expanded the p/e multiple and investors did not want to chase the shares at every price.
The company reported a 16.8% increase in consolidated net profit at Rs 5,215 crore for the December-ended quarter when compared to Rs 4,466 crore in the same quarter of the previous year. The IT company's gross revenue for the quarter rose 12.3% to Rs 25,927 crore for the third quarter of the financial year 2020-21. In constant currency terms, revenue growth was 6.6%.
Its operating margin for the third quarter stood at 25.4%, up 350 basis points from the same period in the last year. Digital revenues of the company crossed 50% of the total revenue during the quarter, resulting in year-on-year growth of 31.3% in constant currency. Its free cash flow stood at Rs 5,683 crore.
The shares of Infosys were last trading at Rs 1,348 on the National Stock Exchange, a drop of almost 3 per cent, even as most IT stocks saw a fall in their share price.