Indian IT major Infosys will consider a share buyback plan in its board meeting scheduled on April 14.
"The Board of the Company will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on April 14, 2021, in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018," the company said in a regulatory filing.
Infosys is expected to hold board meetings on April 13 and 14 to approve and take on record financial results for quarter and fiscal ended March 31, 2021. The company will release its results on April 14 and declare final dividend for the last financial year after the meeting.
Indian IT companies are slated to kick off the financial results seasons for the fourth quarter and financial year FY21 from April 12. Tata Consultancy Services (TCS) would be the first company to post its financial results.
Indian IT companies are expected to post stellar performance for the March quarter. Experts believe ramp-up of previously signed large deals, broad-based growth and tailwinds from cloud transformation would help IT sector post another stellar quarter.
"We estimate revenue growth between 1.6-4.3 per cent quarter-on-quarter in constant currency (CC) for Tier-1 and 2-4.4 per cent q-o-q CC for Tier-2," said a recent Prabhudas Liladher report.
On the margins front, IT sector is likely to take a hit sequentially on account of salary hikes, promotions, bonuses and strong rupee. "EBITM may expand on a year-on-year basis for most of the companies, driven by low travel costs, tight cost control and operating efficiencies. We expect Infosys and HCL Tech to defend their FY21 margins and expect them to guide for FY22 EBITM in the range of 22-24 per cent and 20-21 per cent, respectively," said an Emkay Research report.
Cloud, digital transformation, automation, AI and cybersecurity continue to see healthy demand. "We expect Tier-I techs to report q-o-q growth of 2.2-3.9 per cent in Q4FY21 and 2.5-4.5 per cent for TierII techs in CC terms, maintaining strong revenue growth momentum from Q3FY21," the Emkay report added.
(Edited by Vivek Punj)