Infosys shares dropped by nearly 6% today, reflecting investor reactions to overnight declines in Infosys ADRs despite strong Q3FY25 results and upward revision in revenue guidance. The IT major delivered robust numbers but faced mixed reactions from brokerages.
Key Highlights:
- Revenue growth guidance for FY25 revised upward to 4.5-5% in constant currency, marking the third upward revision this fiscal year.
- Net profit for Q3FY25 grew 11.4% YoY to ₹6,806 crore, exceeding estimates.
- Revenue rose 7.6% YoY to ₹41,764 crore, surpassing expectations.
- Operating margin guidance maintained at 20-22% for FY25.
- Large deal wins amounted to $2.5 billion, with 63% net new growth.
Brokerage Ratings:
- Nomura: Maintains ‘Buy,’ target price ₹2,220.
- Nuvama: ‘Outperform,’ raises target to ₹2,350.
- Bernstein: ‘Outperform,’ target at ₹2,330.
- BofA Securities: ‘Buy,’ increases target to ₹2,150.
- HSBC: ‘Buy,’ target ₹2,120.
- Morgan Stanley: ‘Overweight,’ target ₹2,150.
- Investec: ‘Sell,’ revised target ₹1,773 citing limited upside.
Key Statements:
CEO Salil Parekh noted, “Strong revenue growth and robust operating parameters reflect the success of our differentiated digital offerings and strategic initiatives. We are witnessing increasing client traction in enterprise AI capabilities.”
Despite strong operational metrics, market reactions suggest concerns over cost pressures and potential headwinds in discretionary spending, as highlighted by some brokerages.
Disclaimer: The above information is for informational purposes only and should not be considered financial or investment advice.
