Why Infosys Share Prices Drop Over 4% Today

After the business released its second quarter results, Infosys, a significant player in the IT industry, saw its share price fall more than 4% in early Friday trading on NSE. The opening price of Infosys shares was Rs. 1,1414.35, whereas the previous closing was Rs. 1,465.50 per share.

At 12:28 IST, Infosys shares were down roughly 2.78% since the morning, selling for Rs 1,425.30 per share.

Infosys’ net profit increased by 3.17% in the quarter to Rs 6,212 crore from Rs 6,012 crore in the same period the year before. Additionally, the company’s consolidated sales increased significantly year over year, rising 6.7% to Rs 38,994 crore.

Revenue for Infosys increased by 3.6% in US dollars for the second quarter, reaching $4,718 million, up from $4,555 million in the September period. Sequential analysis revealed a 2.2% increase in sales, reaching $4,617 million.

Infosys released second-quarter profits that were in line with expert predictions, but the stock price fell as a result of a less encouraging sales projection for the current fiscal year.

Infosys reduced its FY24 revenue prediction from an earlier estimate of 1-3.5% in the June quarter to a range of 1-2.5%. Infosys maintained its operating margin target at 20-22% in spite of this adjustment.

“Infosys Ltd.’s Q2FY24 results show a mixed performance, and revenue projection for FY24 has been reduced from 1.0 to 3.5 percent to a range of 1.0 to 2.5% increase in constant currency. According to Dhruv Mudaraddi, Research Analyst at StoxBox, “this adjustment is related to decreased volumes due to reduced discretionary expenditure and mega deal volumes due to delays in project ramp-up.

A trading company named Choice Broking noted the IT company’s circumspect FY24 projection. They did, however, also point out that the company’s sizable order book may serve as a growth engine. Despite the decrease in the stock’s performance today, the brokerage has maintained its ‘add’ rating and Rs 1,655 target price for Infosys, suggesting the possibility of an increase.