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.
Indian tech giant Infosys Ltd announced a 4.7% increase in net profit for the quarter ended September 2024, along with a revised revenue guidance for FY25 on the back of successful mega deals. The company also declared an interim dividend and saw a rise in stock prices following the results announcement. CEO Salil Parekh credited their growth to industry expertise and market-leading capabilities, while CFO Jayesh Sanghrajka highlighted their focus on accelerating revenue growth and margin performance.
Bengaluru-based IT services giant Infosys released its Q2 results on Thursday, reporting a steady sequential margin and a modest revenue growth in constant currency terms. However, the company's shares fell by over 4% in Friday's trade. Morgan Stanley maintains an overweight rating on the stock, with a target of Rs 2,150, while Citi maintains a neutral position with a target of Rs 1,965. Citi highlights important forward-looking indicators for Infosys, including a decline in large deal total contract value, a decrease in headcount, and no projected growth in the upcoming quarters.
Infosys, one of India's largest IT companies, reported a 4.7 per cent rise in net profit in the September quarter. Despite a tough global economic environment, the company added about 2,500 employees in the quarter, reversing a six-quarter hiring downturn. This is an important development for Infosys, which has been struggling to retain employees in recent years. The company's strong financial performance and increase in employee strength signals growth and stability for the IT giant, making it a market leader in the tech industry.
IT giant Infosys declared a 30% rise in its net profit for the fourth quarter of financial year 2024, with a net profit of Rs 7,969 crore. However, its revenue growth was only 1.3% compared to the previous year. Despite this, Infosys has recommended a final dividend of Rs 20 per equity share and an additional special dividend of Rs 8 per equity share. The company is projecting a 1-3% revenue growth in constant currency for the financial year 2025.
TCS has seen a positive start in the stock market as it gained over 1.5% following its Q4 results showing a 100 basis-point rise in operating margin and record deal wins. However, major foreign brokerages have contrasting views on the IT giant. TCS's CEO and MD, K Krithivasan, expressed satisfaction with the performance, citing a strong order book and execution excellence, while analysts from Mehta Equities noted a slight underperformance in revenue growth but praises for surpassing EBIT forecasts. All eyes are now on Infosys' upcoming results to assess the overall recovery in the IT sector.
Infosys, the country's second largest software exporter, has received a tax refund of ₹6,329 crore from the Income Tax Department, as announced in their exchange filing. However, the company is also facing a tax demand of ₹2,767 crore for assessment orders issued by the I-T department. This news caused a rise in Infosys' shares by nearly 2% in the opening trade on Monday, extending gains for the second consecutive session. The company is currently evaluating the implications of these orders on its financial statements for the quarter and year ending March 31, 2024, and is also considering filing appeals against these orders. The board of Infosys is set to meet on April 18 to approve its financial results for the January-March quarter, which will kick-off the March quarter earnings season.
Shares of IT giants Infosys and Wipro experienced declines on Wall Street influenced by Accenture's revised revenue projection for 2024, reflecting the cautious economic outlook. The consulting firm's share price tumbled over 9% following its updated forecast, anticipating subdued demand for its services due to economic headwinds. This development highlights the broader challenges faced by the IT and consulting sector, with businesses tightening budgets and limiting spending on additional services. Indian IT majors such as TCS and Infosys have previously reported subdued results, in line with this trend of reduced industry spending. Accenture's third-quarter revenue forecast fell below market estimates and new bookings experienced a decline, contributing to the negative sentiment.
HCL Technologies and Wipro reported strong quarterly results for the October-December period, following in the footsteps of TCS and Infosys. HCL Tech's revenue grew 5.9% sequentially and the company crossed a milestone of $12 billion in services revenue. The IT giant's CEO is confident in their continued growth momentum and is excited about their progress in hyper-automation and delivering innovation to clients. HCL Tech also announced 18 large deals and its 84th consecutive quarter of dividend payouts.