Infosys rallies as Q2 profit beats forecasts; 1:1 bonus issue

The stock rallied 5% to Rs 3,817 in otherwise weak market on National Stock Exchange.

Infosys has rallied 5% to Rs 3,817 in otherwise weak market on the National Stock Exchange (NSE), after the company reported a better-than-expected consolidated net profit at Rs 3,096 crore for the second quarter ended September 30, 2014 (Q2).

The country’s second largest IT firm in terms of market value had profit of Rs 2,886 crore in June 2014 quarter. Total consolidated revenues, grew 4.5% to Rs 13,342 crore in the September quarter, as against Rs 12,770 crore in the June quarter, Infosys said in a statement.

Analysts, on an average, had expected profit of Rs 3,033 crore on revenues of Rs 13,315 crore for the quarter.

"We expect Infosys to maintain its 7-9% guidance for FY15. Commentary on any changes in the strategy of the company going forward, plans of capital allocation, discretionary spend, and measures to control attrition are key monitorables," analysts at Edelweiss Research had said in a recent note.

Meanwhile, the board has recommended a bonus issue of one equity share for every equity share held. The board also declared interim dividend of Rs 30 per equity share. The interim dividend declared in the previous year was Rs 20 per equity share, it added.

The stock opened at Rs 3,660 and touched high of Rs 3,834 on NSE. A combined 1.4 million shares changed hands on the counter in first 10 minutes of trade on NSE and BSE.