Infosys share price is expected to increase on Friday after its American Depository Receipts (ADRs) surged over 8% following the announcement of its Q1 results. Infosys ADRs experienced their biggest single-day jump in four years on the New York Stock Exchange (NYSE) on Thursday, closing 8.38% higher at $22.50 after the company surpassed its revenue estimates for the first quarter of FY25. In after-market trading, the ADRs gained an additional 0.22%, ending at $22.30.
Infosys, India’s second-largest IT services company, reported a consolidated net profit of ₹6,368 crore for the quarter ending June 30, 2024. This marks a 7.1% increase from ₹5,945 crore in the same period last year. However, the profit declined by 20.1% quarter-on-quarter, mainly due to a tax refund boost in the previous quarter.
The company’s Q1FY25 revenue from operations grew by 3.7% to ₹39,315 crore from ₹37,923 crore in the previous quarter. In dollar terms, revenue was $4,714 million, a 2.1% increase from $4,617 million in Q1FY24 and a 3.3% rise from $4,564 million in Q4FY24.
At the operational level, earnings before interest and taxes (EBIT) rose by 8.8% to ₹8,288 crore, with the EBIT margin improving by 100 basis points to 21.7%.
Infosys has raised its revenue growth forecast for FY25, now expecting a constant currency revenue growth of 3% to 4%, compared to the earlier estimate of 1% to 3%. The company also maintained its operating margin guidance of 20% to 22% for the current financial year.
On Friday, July 19, 2024, Infosys share price opened nearly 5% higher at Rs 1,844 on the NSE.
