Infosys shares plunged as much as 5.8% to an intra-day low of Rs 1,816. The stock was the major loser in the Nifty 50. It was despite an upward revenue guidance for the current fiscal year. During the pre-open session, the stock was 4% gap-down quoting at Rs 1,851. However, most brokerages raised concerns about the guidance being lower than the estimates.
Infosys ADR nosedives 6%
The Infosys ADR On the New York Stock Exchange fell as much as 6% to $21.515. The ADR shares declined after declaring its October-December quarter results for fiscal 2024-25 (Q3FY25). On Thursday, the company reported a rise of 11.4% in net profit standing at Rs 6,806 crore, compared to Rs 6,106 crore in the year-ago period. The revenue for the quarter came at Rs 41,764 crore, up 7.6% year-on-year.
Infosys Q3: Morgan Stanley says revenue guidance lower than estimates
The brokerage firm said the revenue guidance was lower than the estimates. It noted that the revenue guidance for Q4 FY25 implies -2.3% to 0.3%, against the expectation of -1% to 1%. Also, the higher components of third-party items are driving Infosys’s revenue. The firm maintained an ‘Overweight’ rating on the stock, with a target price of Rs 2,150. The company’s net headcount addition provides a reasonable acceleration in revenue growth.
Infosys Q3: Investec worried about revenue trajectory
The company’s revenue growth was strong but appears weak internally, said Investec. The maintained its ‘Sell’ rating on the stock, with a target price of Rs 1,773, a downside of 8% from the closing price of January 16. The company’s improved revenue growth guidance implies a -2% to -0.2% sequential decline in Q4 FY25.
Infosys Q3: HSBC says sustainability of pass-through revenues in FY26 uncertain
According to HSBC, Infosys had a decent quarter in terms of revenue growth and margins. However, the brokerage firm said the sustainability of pass-through revenues in FY26 remains uncertain. HSBC has maintained its ‘Buy’ rating on Infosys, with a target price of Rs 2,120.
That said some of the brokerages remained optimistic about Infosys after delivering the best earnings of the season so far-
Infosys Q3: Bernstein maintains Outperform
The brokerage house, Bernstein, said that Infosys beat the estimates on revenue, margin, and net profit in Q3. It sees the IT major continuing to upcycle in large-cap services while delivering the best earnings of the season. The company’s results were driven by a recovery in discretionary spending, said Bernstein. It has maintained its ‘Outperform’ rating on the stock, with a target price of Rs 2,330.
Infosys Q3: Nomura says stock the top pick
The brokerage firm Nomura iterated the stock as a top pick for large-cap India IT service. It maintained the ‘Buy’ rating on the stock with a target price of Rs 2,220. The project Maximus continued to play out, said the research firm.
Infosys Q3 results
The company’s net profit came in at Rs 6806 crore, up 11.46% year-on-year. The company reported revenue from operations at Rs 41,764 crore, up 7.58% on year for Q3 FY25 as against Rs 38,821 crore during the third quarter of FY24. Its large deal TCV stands at $2.5 billion, up 2.7% sequentially, but fell 23% y-o-y.