Infosys ADRs Surge Nearly 10% On Q1 Profit Beat, Lifting FY25 Forecast

The American Depository Receipts of Infosys Ltd. ended over 8% higher on Thursday after it upped its revenue forecast for the financial year ending March 2025, citing significant large deals during the April-June period.

The ADR of the tech major rose as much as 10.1% to over a two-year high of $22.61 per share. The scrip later pares gains to close 8.3% higher at $22.25 apiece.

The Bengaluru-based software services provider now expects a revenue increase of 3-5% for fiscal years 2024–25, up from its previous expectation of a 1-2% rise.

The company also anticipates its operating margin to range between 20% and 22% for the current financial year, according to a media statement issued to the exchanges.

Infosys' net profit declined by 20.1% sequentially to Rs 6,374 crore for the three months ended June 30, compared to Rs 7,969 crore in the previous quarter. This exceeded the Rs 6,253 crore profit expected by analysts tracked by Bloomberg.

The decline in net profit was attributed to a one-time interest on an income tax refund included in 'other income' in the fourth quarter of the preceding financial year, amounting to Rs 1,916 crore. Excluding this impact, profits increased by 5.2% in the quarter ended June 30.

• Revenue increased 3.7% to Rs 39,315 crore compared to Rs 37,923 crore (Bloomberg estimate: Rs 38,810.6 crore).

• EBIT rose by 8.8% to Rs 8,288 crore versus Rs 7,621 crore (Estimate: Rs 8,024.6 crore).

• Margin expanded to 21.1% from 20.1% (Estimate: 20.67%).

• Net profit declined 20% to Rs 6,374 crore versus Rs 7,969 crore (Estimate: Rs 6,253.1 crore).

Shares of Infosys closed 2.24% higher at Rs 1,761 apiece on the BSE, compared to a 0.78% increase in the benchmark Sensex. The quarterly results were announced after market hours.

Meanwhile, the ADR of another Indian tech major, Wipro Ltd., closed 2.84% higher at $6.89 per share.