“Infosys Share Price Soars: ADRs Surge Over 8% Following Stellar Q1 Results”
Infosys, one of India’s leading IT services companies, recently made headlines as its American Depository Receipts (ADRs) surged over 8% on the New York Stock Exchange (NYSE) following the announcement of its first-quarter results for the fiscal year 2025. This significant jump in stock price reflects the market’s positive reaction to the company’s robust performance and optimistic outlook.
Infosys Share Price – Q1 Performance Highlights
Infosys reported a consolidated net profit of ₹6,368 crore for the quarter ending June 30, 2024, marking a 7.1% year-on-year increase from ₹5,945 crore in the same period last year. However, the net profit saw a 20.1% decline quarter-on-quarter, primarily due to a tax refund boost in the previous quarter.
The company’s revenue from operations increased by 3.7% to ₹39,315 crore from ₹37,923 crore in the previous quarter. In dollar terms, Infosys’ revenue stood at $4,714 million, a 2.1% increase from $4,617 million in Q1FY24 and a 3.3% rise from $4,564 million in Q4FY24.
Operational Efficiency and Margin Improvement
At the operational level, Infosys demonstrated strong performance with earnings before interest and taxes (EBIT) rising by 8.8% to ₹8,288 crore. The EBIT margin improved by 100 basis points quarter-on-quarter to 21.7%. This improvement was attributed to the company’s ongoing efficiency initiatives and cost management strategies.
Market Reaction and ADR Performance – Infosys Share Price
Following the announcement of these results, Infosys’ ADRs ended 8.38% higher at $22.50 during normal trading hours on the NYSE. The positive momentum continued in after-market hours, with the ADRs closing at $22.30. This surge in ADR price underscores investor confidence in Infosys’ growth trajectory and its ability to navigate the challenging macroeconomic environment.
Revised Revenue Guidance
Infosys has revised its revenue growth guidance for FY25, projecting a constant currency revenue growth of 3-4%, up from the previous estimate of 1-3%. The company also retained its operating margin guidance, anticipating a range of 20-22% for the current financial year. This upward revision reflects the company’s strong Q1 performance and positive momentum in financial services deals in North America.
Analyst Insights for Infosys Share Price
Market analysts have responded positively to Infosys’ Q1 results and revised guidance. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted that Infosys’ better-than-expected earnings and raised revenue growth outlook indicate that the worst may be behind for the IT sector. He highlighted the company’s positive technical trend, suggesting potential upside targets in the ₹1,825 – ₹1,850 range.
Infosys Share Price
Shaji Nair, Research Analyst at Sharekhan by BNP Paribas, emphasized the early signs of improvement in financial services in the US, which bodes well for Infosys’ stock. He maintained a buy rating on the stock, reflecting increased confidence in the company’s outlook for the remainder of the fiscal year.
Conclusion for Infosys Share Price
Infosys’ impressive Q1 performance and subsequent surge in ADR price highlight the company’s resilience and strategic agility in a dynamic market environment. With a strong operational foundation, improved margins, and an optimistic revenue outlook, Infosys is well-positioned to capitalize on emerging opportunities and drive sustained growth in the coming quarters.
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