Infosys ADRs slump 11% after drastic cut in FY24 revenue guidance

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The American Depository Receipts (ADRs) of IT major Infosys slumped 11% on the New York Stock Exchange on Thursday after the company trimmed its forecast sharply for FY24...

The Bengaluru-based software major has reported 11% year-on-year growth in net profit at Rs 5,945 crore for the quarter ended June as clients cut back spending and delayed making decisions on future projects in a challenging economic environment...

Infosys earnings remained muted on a sequential basis in the June quarter, given a significant slowdown in business amid global macroeconomic headwinds...

"We view the Infosys Q1 earnings performance as a negative read-through for the stock, driven by steep revenues in guidance revision," said Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas...

In constant currency terms, the company's revenue rose just 1% quarter-on-quarter, while the consolidated operating margin came in at 20.8%, down 20 basis points sequentially...

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