The latest second-quarter financial report from Infosys has not met investor expectations, with its shares falling by 4.50% and causing a market value loss of Rs 31,327.94 crore. Despite the decline, the company posted a 4.7% year-on-year growth in its consolidated net profit and has now raised its revenue growth forecast for the full financial year. CEO Salil Parekh credits the rise in mega deals for the increase in revenue and this marks the third consecutive year of guidance increase for Infosys.
Infosys Q2 Results: Growth, Guidance Raise Despite Market Disappointment
Background:
Infosys, a leading global IT services and consulting company, recently released its financial results for the second quarter of fiscal year 2023. The results, while showing growth, fell short of investor expectations, leading to a significant market value loss.
Financial Performance:
For the quarter ended September 30, 2022:
Despite the growth, Infosys shares fell by 4.50% in trading, resulting in a market value loss of Rs 31,327.94 crores. This decline was attributed to the company's operating margin, which dipped to 21.5% from 22.4% in the previous quarter, and its cautious guidance for the upcoming quarters.
Guidance and Outlook:
Despite the market disappointment, Infosys raised its revenue growth forecast for the full financial year from 14.5-16.5% to 15-16%. CEO Salil Parekh attributed this increase to a surge in mega deals. This marks the third consecutive year of guidance increase for Infosys.
CEO's Perspective:
Parekh acknowledged the market reaction but highlighted the company's strong performance in other areas. He said, "We continue to see momentum in our digital transformation services, cloud, and data-led initiatives. We have a robust pipeline of deals and are optimistic about the future."
Top 5 FAQs and Answers:
1. Why did Infosys shares fall despite revenue growth?
2. What drove the growth in Infosys' revenue?
3. What is Infosys' outlook for the full financial year?
4. How does this compare to past performance?
5. How is Infosys positioned in the IT services industry?
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