Infosys ADRs, listed on the New York Stock Exchange (NYSE), surged over 8 percent overnight following the company’s better-than-expected June quarter results and an upward revision of its growth guidance.
Infosys shares topped the index gainers, rising by 5 percent in early trade on July 19 to reach a 52-week high, after surpassing analyst expectations for Q1 earnings and raising its revenue growth guidance, indicating signs of recovery.
At 09:16 am, Infosys shares were trading at Rs 1,814 on the NSE. Overnight, Infosys ADRs on the NYSE skyrocketed over 8 percent to settle at $22.25 after the company released its June quarter results.
Infosys’ revenue from operations rose 3.7 percent quarter-on-quarter in April-June to Rs 39,315 crore. However, its consolidated net profit fell around 20 percent sequentially to Rs 6,368 crore in Q1 FY25, mainly due to a high base in the previous quarter from a tax refund boost. Despite this, both the bottom line and top line exceeded market expectations. A recent poll of 10 brokerages had estimated Infosys’ Q1 net profit at Rs 6,248 crore and revenue at Rs 38,850 crore.
In addition to the better-than-expected numbers, the IT services giant raised its revenue growth guidance to 3-4 percent for the current fiscal year, up from the previous 1-3 percent forecast for FY25. Analysts had anticipated the company to maintain its prior guidance. This move suggested the company is seeing signs of recovery. Brokerage firm Nuvama Institutional Equities highlighted the management’s positive outlook, predicting a recovery in the US BFSI vertical for Infosys and a stronger first half compared to the second half.
Conversely, Motilal Oswal Financial Services believes the FY25 revenue growth guidance upgrade was largely driven by a one-time spike in India business and inorganic factors. However, it noted that strong deal wins could enhance the company’s medium-term growth outlook. “Infosys has maintained its margin guidance but continues to see upside potential in the medium term, which we view as encouraging,” MOFSL stated.
Read More: Click Here
