Infosys shares gain as IT firm expects to receive Rs 6,329 crore tax refund from IT department—check out target price

Infosys share price today, Infosys tax refund, Infosys share price target 2024: Shares of Infosys, the country’s second-largest IT company, were on investors' radar on Monday, April 1, after the IT firm informed the exchanges that it expects a refund of Rs 6,329 crore from the Income Tax Department.

The IT stock rose as much as 2.12 per cent to hit the day's high of Rs 1,529.95 on the NSE in early morning deals. Extending the gains for the second day, the stock traded 0.75 per cent higher at Rs 1,509.35 on the NSE at 10:21 am.

On Saturday, the Bengaluru-headquartered IT company informed the stock exchanges about tax demand to the tune of Rs 2,763 crore, citing various assessment orders. Infosys said it has received orders from the Income Tax Department for assessment years 07-08 to 15-16, 17-18, and 18-19 during the quarter.

"As per the orders, the company expects a refund of Rs 6,329 crore (including interest). The company is in the process of evaluating the implications of these orders on the financial statements for the quarter and year ending March 31, 2024," Infosys said in a BSE filing.

Infosys Q4 results 2024 date

Infosys, which competes with TCS, Wipro, and others in the market for IT services contracts, is set to declare its financial results for the fourth quarter of the current fiscal year as well as the full FY24 on April 18.

The IT company also said it has received an order for assessment year 2022–23 with a tax demand of Rs 2,763 crore, including interest, and for assessment year 11–12 with a tax demand of Rs 4 crore, interest included. Infosys has received assessment orders for subsidiaries as well, totalling Rs 277 crore.

These include assessment orders for assessment years 21–22 and 18–19, respectively, with a total tax demand of Rs 145 crore; orders for assessment year 22–23 with a tax demand of Rs 127 crore; and orders for assessment year 22–23 entailing a tax demand of Rs 5 crore, all of them inclusive of interest.

"The company is in the process of evaluating the implications of these orders on the financial statements for the quarter and year ending March 31, 2024, and also evaluating filing appeals against these orders," Infosys said. Read more

Infosys share price target: Morgan Stanley retains 'Overweight'

Morgan Stanley has retained an overweight rating on Infosys. However, it has cut the target to Rs 1,750 from Rs 1,820 earlier on the IT stock.

According to the brokerage, Infosys' Q4 results and FY25 revenue guidance will be a key catalyst for the stock. The analyst at the brokerage expects 3-6 per cent revenue growth guidance in constant currency terms (CC) in the base case.

"Base case growth hinges on strong deal wins in FY24, with a potential bounceback in H2, implying better conversion of deal wins into revenue," the brokerage added.

(with PTI inputs)

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