NEW DELHI: Shares of Infosys jumped over 4 per cent in early trade on Monday after it reported better-than-expected June quarter numbers.

The company posted a 5.3 per cent year-on-year jump in net profit and also raised the revenue growth forecast for current fiscal to 8.5-10 per cent range. The IT firm posted a net profit of Rs 3,802 crore for the quarter ended June 2019 against Rs 3,612 crore in the same period last year.

The scrip was trading 4.52 per cent up at Rs 760 at around 9.45 am (IST), while the BSE Sensex was up 112 points, or 0.29 per cent, at 38,848 at around the same time.

The company has announced an enhanced capital allocation policy wherein it will return 85 per cent of free cash flow cumulatively over a five-year period to shareholders via buyback and dividends. Revenue from operations rose 14 per cent to Rs 21,803 crore.

Infosys raised its revenue growth guidance for the fiscal to March 31, 2020 to be between 8.5 per cent and 10 per cent, from the 7.5 per cent to 9.5 per cent range it had projected earlier. Global brokerage firm CLSA maintained ‘Buy’ rating on Infosys post Q1 results with a target price of Rs 900, citing margins appears to have bottomed out with positive outlook.

“Infosys appears to have finally regained cost control after five quarters of unchecked margin slippage,” the global brokerage firm said.

Domestic brokerage firm ICICI Securities maintained ‘Add’ rating with a target price of Rs 785. “With worst in margins behind, raise in revenue guide and improved capital allocation, we maintain our Add rating on Infosys,” ICICI Securities said in a report.