Shares of Infosys (NS:INFY), a global leader in next-generation digital services and consulting, faced a significant decline in both U.S. and Indian markets following the company's Q2 results on Friday. The company's stock fell by 6.5% to $16.46 on the New York Stock Exchange (NYSE) Thursday, and marked its third consecutive day of opening lower on the Bombay Stock Exchange (BSE) at ₹1,419.95.
This downward trend has seen Infosys' shares trading at 16% lower than its 52-week high of ₹1,672.45. The company also hit a low point on April 25, 2023, when it reached ₹1,215.45. As a result of these declines, Infosys' market capitalization slipped to ₹5.95 lakh crore.
The IT sector as a whole also experienced pressure, with the BSE IT index falling by 0.8%. Fellow IT companies Wipro (NYSE:WIT) and Tech Mahindra were not spared from selling pressure either. In contrast, HCL Technologies saw a gain of 2.5% following a positive earnings report.
Despite the stock performance, Infosys reported strong financial results for the second quarter of the fiscal year 2024. The company announced an interim dividend of ₹18 per share following a net profit of ₹6,212 crore (INR100 crore = approx. USD12 million) in the July-September quarter. It also reported revenues of $4,718 million in Q2 FY24, indicating a sequential growth of 2.3% in constant currency.
However, Infosys reduced its FY24 revenue growth projection to 1-2.5%, down from the previously trimmed guidance of 4-7%. The company maintained its operating margin guidance at 20-22%. Despite this adjustment in revenue growth projection, the company's consolidated revenue saw an overall growth of 6.7%.
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