Infosys Q3 results: Tech giant sees ADRs jump by 5% despite decline in net profit
IT tech major, Infosys witnessed a 7.3% YoY decline in its net profit to ₹6,106 crore in the third quarter of FY24. Despite a significant decline in its net profit, Infosys shares, listed on the US stock market, jumped as much as 4.9% during the opening trade on Thursday, January 11.
India’s second-largest IT firm fell below market expectations and reported a 1.7% sequential fall in its net profit to ₹6,106 crore on sluggish demand from clients and cut its annual sales forecast.
The tech giant’s consolidated revenue from operations increased 1.3 percent to ₹38,821 crore during the third quarter of the ongoing fiscal from ₹38,318 crore a year ago.
Back at home, Infosys shares closed 1.62% lower at ₹1495 per share on BSE on Thursday.
During the quarter under review, the company won deals worth $ 3.2 billion. The major highlight of the deal was a mega agreement that included 71 percent net new wins.
“Our performance in the third quarter was resilient. Large deal wins were strong at USD 3.2 billion, with 71 percent of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital, and cloud to cost, efficiency, and automation. This is the highest deal win in the nine quarters that the company has ever had,” said Infosys CEO and MD Salil Parekh on Thursday.
During the quarter under review, Infosys lost a USD 1.5 billion deal focussed on artificial intelligence from an unnamed IT giant.
In November, Infosys’ step-down subsidiary Infosys McCamish Systems faced a cyber attack, in which the company’s revenues suffered a USD 30 million hit.
The company revenue in financial services fell by 5.2 percent on an annual basis, 7.3 percent in communication and 5 percent in hi-tech the segment. In the manufacturing segment, it posted a 12.5 percent growth, 8.2 percent in life sciences, 2 percent in retail, and 1.8 percent in energy, utilities, resources, and services.
Infosys’ revenue in North America fell by 4.7 percent on a year-on-year basis, followed by India, where its revenue fell 1.9 percent. Unlike North America, Infosys Europe’s business flourished by 9.2 percent during the quarter under review. Its employee count reduced by about 7 percent year-on-year to 3,22,663 and about 1.8 percent as compared to the previous quarter.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download Finplay News App to get Daily Market Updates.
More
Less
Published: 11 Jan 2024, 11:12 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.