Shares of Infosys fell by as much as 5% in early trading on October 18, following a slight miss in its Q2 FY25 earnings report. The company’s consolidated net profit came in at ₹6,506 crore, a 2.2% sequential increase but below the ₹6,769 crore estimate. Revenue rose 4.2% quarter-on-quarter to ₹40,986 crore, slightly missing the forecasted ₹40,857 crore.
Brokerage firm Morgan Stanley had anticipated a potential dip in Infosys’ stock due to the earnings miss, while also advising investors to consider buying during the downturn. The firm identified a strong support level at ₹1,780, based on the stock’s five-year average free cash flow multiple.
Following the opening drop, Infosys shares hit a low of ₹1,889 before quickly rebounding to ₹1,936.85 on the NSE by 9:24 AM. The company’s American Depository Receipts (ADRs) had similarly slipped 4% on the NYSE overnight but recovered to close just 1% lower.
Despite the earnings miss, Infosys raised its FY25 revenue growth guidance to 3.75-4.5%, up from the previous 3-4%, driven by broad-based Q2 performance, increased volumes, and growth in its small-deal pipeline. The operating margin guidance for FY25 was maintained at 20-22%.
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Source: Moneycontrol
News Desk
