Infosys ADRs Drop 2% Post Q2 Results: Key Highlights

Infosys’ American Depositary Receipts (ADRs) dipped nearly 2% in the pre-market session on the NYSE following the release of the company’s Q2 results.

The ADRs were trading at $22.50, down 1.75% or 40 cents, from their previous close of $22.90. Infosys had announced its September quarter results after market hours in India, where its stock closed 2.58% higher at Rs 1,969.50.

Infosys reported a 4.7% year-on-year (YoY) increase in net profit, reaching Rs 6,506 crore compared to Rs 6,212 crore in the same quarter last year. However, analysts had expected a higher profit rise of 10-15% YoY.

The company also posted a 5.1% increase in revenue, amounting to Rs 40,986 crore, up from Rs 38,994 crore in the corresponding quarter last year, which was in line with market expectations. Infosys revised its FY25 revenue growth forecast to 3.75%-4.50% and maintained its margin guidance at 20%-22%.

“We achieved 3.1% quarter-on-quarter growth in constant currency during Q2, driven by broad-based growth, especially in financial services. This is attributed to our industry expertise, leadership in cloud with Cobalt, and generative AI with Topaz, which has increased client preference for partnering with us,” said Salil Parekh, Infosys CEO and MD.

“Our large deals, totaling $2.4 billion in Q2, showcase our strong market position. I deeply appreciate our employees for their dedication as we continue to strengthen our leadership in the market,” he added.