Shares of information technology (IT) companies continued their northward movement for the second day in a row, as the Nifty IT index hit a new high on Thursday, after Mindtree and L&T Technology Services (LTTS) announced strong earnings for the quarter ended June 2021 (Q1FY22). Their large-cap counterpart, Infosys, also raised its forecast for revenue growth for fiscal year 2021-22 (FY22), which boosted overall sentiment.

The Nifty IT Index hit a new high of 29,745 in intraday trading today, after rising nearly 5% in the last two trading days. On Wednesday, the index broke its previous high of 29,311.55 reached on June 30, 2021 in intraday trading. In comparison, the benchmark Nifty 50 rose 0.77% over the last two trading days.

No less than 17 IT stocks hit their respective records today, including Infosys, Wipro, Tech Mahindra, LTTS, Coforge, Happiest Minds Technologies, Tata Elxsi, Mindtree and Sonata Software.

Individually, Infosys shares hit a new record high of Rs 1,597.25, up 1.3% from BSE in intraday trading today, after the second largest player in IT services The country raised its forecast for fiscal year 22 revenue growth on Wednesday, supported by a robust deal pipeline. The stock broke its previous high of Rs 1,590.85 reached on June 30, 2021. Infosys now expects its revenue to increase by 14-16% in FY22, from an earlier estimate of 12. at 14%. This forecast is ahead of the one percentage point increase estimated by analysts. The company, however, kept its margin forecast at 22-24 percent in FY22.

Meanwhile, those of LTTS rose 16% to a record high of Rs 3,373 on BSE in intraday trading after the company reported better-than-expected results for the first quarter of the fiscal year. 22. The share of the software and internet services company broke its previous record of Rs 3,062.45 reached on April 9, 2021. LTTS reported an 84% year-over-year jump and 11.1% % quarter-on-quarter (QoQ). in its Q1FY22 net profit at Rs 216.2 crore, largely on widening margins. In dollars, revenue grew 4.2 percent and 4.3 percent in constant currency (CC) terms, sequentially. Digital and advanced technology revenues were 54% in the quarter.

The EBIT (profit before interest tax) margin increased by 70 basis points (bps) in the quarter to 17.3 percent, despite an increase in salaries in the first quarter of the fiscal year22, thanks to a improved efficiency, better utilization and continuous resizing of the workforce. The company expects revenue to increase 15-17% in fiscal 22E. Transaction traction was healthy during the quarter with six contracts with a total contract value (TCV) of $ 10 million and more, which includes two transactions with TCV of $ 25 million and more.

Management said the last four consecutive quarters of improved operating margin were the result of a gradual shift in the portfolio towards more digital engineering as well as operational efficiency initiatives around recruiting, skills cross-fertilization, productivity improvement and cost optimization.

Meanwhile, Wipro also hit a record high of Rs 579.75, up 3% today, gaining 10% in the last two trading days, ahead of its first quarter of fiscal 22 results later. during the day.

Wipro’s net profit could jump 14-19% year-on-year in the quarter ended the first quarter of FY22, with revenue growth of 17-19%. Revenue growth would be driven by organic growth in the IT services business and the acquisition of Capco, analysts said. A sequential contraction in EBIT (profit before interest and tax) margins is a given in the midst of rising wages and dilution of the Capco acquisition, which in turn would result in lower PAT (profit after tax) on on a quarterly basis (QoQ), they mentioned. CLICK HERE FOR THE FULL REPORT

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