 "Infosys Limited Corporate Head Office")
Infosys Limited Corporate Head Office (Photo: Wikimedia Commons)
Infosys in focus: On Friday, August 2, 2024, shares of IT giant Infosys were in focus after Karnataka State authorities retracted a pre-show cause notice demanding Rs 32,403 crore in GST payments.
The notice was initially issued on July 31, 2024, concerning GST for the period from July 2017 to March 2022 related to expenses incurred by Infosys’s overseas branch offices.
On the bourses, Infosys’s stock witnessed a decline, falling 1.32 per cent to an intraday low of Rs 1,828.10 per share on the NSE. In comparison, the Nifty IT index dropped 1.64 per cent to an intraday low of 40,038.25.
Other IT stocks within the Nifty IT index also faced declines. Coforge decreased 2.83 per cent, Wipro fell 1.96 per cent, Mphasis dropped 1.75 per cent, LTIMindtree was down 1.89 per cent, LTTS fell 2 per cent, HCLTech dropped 1.85 per cent, TCS declined 1.65 per cent, Tech Mahindra decreased 2.36 per cent, and Persistent fell 2.53 per cent in intraday trading.
According to a Business Standard report, the tax authorities at the Centre may review the GST notice.
This comes amid industry apprehensions that other IT firms may also face similar GST demands. Fearing a flurry of tax notices, industry association Nasscom, in a statement on Thursday, urged the authorities to look into investor concern over avoidable litigation and uncertainties in doing business.
Financial performance
For the first quarter of FY25, Infosys reported a net profit of Rs 6,368 crore, marking a 7.1 per cent year-on-year increase, surpassing Bloomberg’s consensus estimate of Rs 6,248 crore. However, the figure represents a 20.4 per cent decline sequentially.
Revenue for the quarter rose by 3.6 per cent year-on-year to approximately Rs 39,315 crore, exceeding the Bloomberg consensus estimate of Rs 38,810 crore. Sequentially, revenue grew by 3.7 per cent.
The company has projected an operating margin of 20 per cent to 22 per cent for FY25, with the margin for the quarter coming in at 21.1 per cent, reflecting a 100 basis point improvement.
Headquartered in Bengaluru, Infosys is a leading IT services firm that offers business consulting, information technology, and outsourcing services.
At 10:39 AM, shares of Infosys were trading 1.06 per cent lower at Rs 1,833 per share. In comparison, Nifty was trading 0.82 per cent lower at 24,804 levels while Nifty IT was down 1.40 per cent at 40,139.30 levels.
First Published: Aug 02 2024 | 10:53 AM IST
