Infosys ADR: American Depository Receipt (ADR) shares of India's second-largest software services provider witnessed a sharp decline on the New York Stock Exchange (NYSE) after declaring its October-December quarter results for fiscal 2024-25 (Q3FY25). Infosys ADR crashed six per cent to $21.515 on the American stock exchange even after the IT major hiked its FY25 revenue growth guidance for the third straight quarter to 4.5-5 per cent today.
On Thursday, January 16, the Sahil Parekh-led tech giant reported a rise of 11.4 per cent in net profit at ₹6,806 crore, compared to ₹6,106 crore in the year-ago period. The revenue for the quarter under review came at ₹41,764 crore, up 7.6 per cent year-on-year (YoY). The revenue in constant currency (CC) terms, rose 6.1 per cent YoY and declined by 1.7 per cent sequentially.
American Depositary Receipt (ADR) serves as a tool for the foreign companies to trade on US stock markets, just like the regular shares of US companies. Also, in theory, an ADR is similar to a special certificate issued by a US bank.
Infosys Ltd reported 11.46 per cent rise in third quarter net profit on pick-up in demand, which also prompted the IT giant to raise its annual sales FY25 forecast for a third time this fiscal year. The IT major's net profit rose to ₹6,806 crore in October-December - the third quarter of April 2024 to March 2025 fiscal (FY25), from ₹6,106 crore in the year-ago period.
Improved demand from US clients helped all eight business segments at Infosys post higher growth, with its mainstay financial services arm notching 6.1 per cent revenue growth. Large order bookings, or deals over $50 million, stood at $2.5 billion during the quarter, versus $2.4 billion in the previous quarter and $3.2 billion in the year-ago period.
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Revenue rose 7.6 per cent to ₹41,764 crore. Infosys raised its full-year revenue growth forecast to 4.5-5 per cent from 3.75-4.5 per cent earlier. Commenting on the results, Parekh said: "Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year-on-year growth, along with robust operating parameters and margins, is a clear reflection of the success of our differentiated digital offerings, market positioning, and key strategic initiatives.
“We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction. This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead.” Infosys added 5,591 employees during the quarter, bringing the total headcount to 3,23,379. Shares of Infosys settled at ₹1,926.20 apiece on the BSE on Thursday, 1.21 per cent lower than the previous close.
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