Infosys ADRs Falls Nearly 3% After Q2 Result Announcement
Infosys raised its revenue forecast for FY 2024-25, now expecting a growth of 3.75-4.5% for the financial year following its Q2 results.
The American Depository Receipts of Infosys Ltd. was trading over 3% lower on Thursday after it reported its second quarter earnings on Thursday.
The ADR of the tech major fell as much as 3.65% to $22.07. The scrip opened 2% lower but later fell to 3.71% lower as of 9:37 a.m. EDT.
The Bengaluru-based software services provider upped its revenue forecast for the financial year ending March 2025. It now expects a revenue increase of 3.75-4.5% for fiscal years 2024–25, up from its previous expectation of a 3-4% rise.
However, the IT major has maintained its guidance for the fiscal at 20-22%, according to a media statement issued to the exchanges.
Infosys' net profit rose 2.2% sequentially to Rs 6,506 crore for the three months ended September 30. This meets the Rs 6,831 crore profit expected by analysts tracked by Bloomberg.
The revenue for the quarter rose 4.3% to Rs 40,986 crore in comparison to Bloomberg's estimate of Rs 40,820 crore. Revenue growth in constant currency terms rose 3.3% on a year-on-year basis and 3.1% sequentially. Revenue growth for the first half of fiscal 2025 rose 2.9% year on year.
Total employee count at the end of the second quarter is 317,788, with an addition of 2,456 employees in the quarter. Attrition marginally inched up to 12.9% from 12.7% last quarter.
The board also announced an interim dividend of Rs 21 per share, a 16.7% increase from last year.
The shares of Infosys closed higher on Tuesday. The shares rose as much as 3.02% during the day to Rs 1,978 apiece on the NSE. The stock closed 2.50% higher at Rs 1,968.10 per share. This compares with a 0.28% decline in the benchmark Nifty 50. It has risen 36.44% in the last 12 months and 26.86% year-to-date.
Out of 44 analysts tracking the company, 30 maintain a 'buy' rating, nine recommend a 'hold,' and five suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.7%.
