Infosys ADR recovers after falling 7% pre-market on Q4 miss

Infosys

Infosys ADR (American Depository Receipt) shares recovered to trade 1 percent down at open after falling 6.78 percent on April 18 on NYSE pre-market after the IT services company missed revenue estimates for the quarter ended March 31, 2024.

Infosys, in its FY25 outlook, slashed its revenue guidance to 1-3 percent, below analyst estimates, as weakness continued in discretionary and digital projects.

The Bengaluru-based company has revised its annual revenue growth guidance five times in the previous five quarters, amid an uncertain demand environment.

The Bengaluru-based company earlier today reported a net profit of Rs 7,969 crore for the fiscal fourth quarter, beating Street estimates. The company reported revenue of Rs 37,923 crore in the three months ended March 31, according to an exchange filing on April 18.

Analysts projected a profit of Rs 6,128 crore on revenue of Rs 38,413 crore, based on an average of 13 brokerage estimates.

Infosys said it delivered the highest ever large deal value in the financial year 2024.

"Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support," said CEO and and MD Salil Parekh.

Infosys announced a final dividend of Rs 20 per share for the financial year 2023-24. It also announced a special dividend of Rs 8 per share. With this, Infosys has declared a total dividend of Rs 46 for the year

Infosys stock rose 0.34 percent to end at Rs 1,419.25 apiece on BSE, ahead of the quarterly earnings report.