- Monday, March 03, 2025
The shares of the Bengaluru-based software major tanked after investors resorted to profit-taking after its positive third quarter earnings
By: India Weekly
SHARES of Infosys tanked nearly 6 per cent on Friday amid profit-taking post announcement of the third quarter earnings.
The stock slumped 5.77 per cent to settle at ₹1,815.10 (£17.18) on the BSE. Intra-day, it declined 5.89 per cent to ₹1,812.70 (£17.15).
At the NSE, it tumbled 5.75 per cent to ₹1,817.50 (£17.20).
The American Depository Receipts (ADRs) of the company listed on the New York Stock Exchange (NYSE) also fell around 6 per cent.
Decline in the stock was instrumental in dragging the markets lower. The stock was the biggest laggard among the Sensex and Nifty firms.
The company’s market valuation eroded by ₹461.08 billion (£4.36bn) to ₹7.53 trillion (£71.26bn).
Co-founder Narayana Murthy’s family wealth eroded ₹18.12 billion (£171.47m) to ₹303.34 billion (£2.87bn), Times of India reports.
The family holds a combined 4.02 per cent stake in the software major, with Murthy individually holding 0.40 per cent stake, his wife Sudha (0.92 per cent), Rohan Murty (1.62 per cent), and Akshata Murty (1.04 per cent). His grandson Ekagrah Rohan Murty holds 0.04 per cent stake in the company.
The 30-share benchmark declined 423.49 points or 0.55 per cent to settle at 76,619.33. The NSE Nifty dropped 108.60 points or 0.47 per cent to 23,203.20.
Other major IT stocks – Tata Consultancy Services, Tech Mahindra and Wipro – also ended lower.
Infosys Ltd, India’s second-largest IT services firm, on Thursday reported an 11.46 per cent rise in third quarter net profit on pick-up in demand, which also prompted the company to raise its annual sales forecast for a third time this fiscal year.
Net profit rose to ₹68.06 billion (£644.04m) in October-December – the third quarter of April 2024 to March 2025 fiscal (FY25), from ₹61.06 billion (£577.80m) a year ago, the company said in a statement.
Revenue rose 7.6 per cent to ₹417.64 billion (£3.95bn).
Infosys raised its full-year revenue growth forecast to 4.5-5 per cent from 3.75-4.5 per cent earlier.
“What we are seeing is a clear change in the discretionary activity in financial services, in retail and consumer products, which gives us good confidence,” chief executive Salil Parekh told reporters.
The Banking, Financial Services and Insurance (BFSI), which accounts for nearly a third of Infosys revenue, notched a 6.1 per cent revenue growth in the quarter, helped by a pick-up in demand in the US.
This came despite December quarter typically being a seasonally weak quarter for the IT industry due to furloughs and fewer working days. (Agencies)
