Infosys shares drop 4.5 per cent despite upgraded FY25 guidance: Here’s what led to the decline:

Infosys shares drop 4.5 per cent despite upgraded FY25 guidance: Here’s what led to the decline

Business

Desk 2024-10-18 21:04:00

Business: Shares of Infosys Ltd fell 4.50% on Friday morning after the company failed to meet investor expectations in its second-quarter financial report. It fell to Rs 1,880.80 on the BSE and Rs 1,880.65 on the NSE, amounting to a market value loss of Rs 31,327.94 crore. Among BSE Sensex and NSE Nifty companies, Infosys was the worst performer.

Market reaction to Infosys earnings

The fall in Infosys shares contributed to a sharp market decline, with the BSE benchmark falling 570.45 points and the NSE Nifty 178.3 points in early trade Despite the stock fall Infosys posted 4.7% year-on-year growth in its consolidated net profit, with Rs 6,506 crore in the second quarter of FY2024-25.

Reference to income guidelines

Infosys raised its revenue growth guidance for the full financial year to 3.75% to 4.5% against an earlier forecast of a steady 3% to 4% revenue growth CEO Salil Parekh highlighted the rise in mega deals as the main cause of the increase in memory. The company has now raised guidance for the third consecutive year.

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