The American depositary receipts (ADRs) of Infosys Ltd plunged 8 per cent in pre-market hours on NYSE after the Bengaluru-listed IT firm announced a muted constant currency (CC) revenue growth forecast of 1-3 per cent for FY25. This was against 1.5-2 per cent growth (revised) it suggested for FY24 at the end December quarter. Infosys had suggested a CC revenue growth of 4-7 per cent for FY24 at the start of the previous year.
A strong total contract value (TCV) of $4.5 billion for the quarter (against expectations of $2-3 billion order wins) could not lift Infosys ADRs. At 5.30 pm local time, Infosys ADRs fell 7.96 per cent to hit a low of $15.60 in -pre-market trade against its previous close of 7.49 per cent.
Infosys said it had rescoping and renegotiation of one of the large contracts in the financial services segment, which resulted in an one-time impact of approximately 100 basis points in Q4. Nearly 85 per cent of the scope of the contract continues as-is, it said.
For the quarter, the second largest Indian IT exporter clocked a 30 per cent year-on-year (YoY) rise in consolidated net profit at Rs 7,969 crore for the March quarter compared with Rs 6,134 crore in the same quarter last year.
The Bengaluru-based technology giant said its sales for the quarter rose 1.3 per cent YoY to Rs 37,923 crore from Rs 37,441 crore. Analysts were expecting sales growth in 3-4 per cent range. The IT firm announced a final dividend of Rs 20 and a special dividend of Rs 28 per share for FY24.
Revenues in constant currency terms (CC) terms remained flat YoY and declined 2.2 per cent. Dollar revenue came in at $4,564 million, up 0.2 per cent YoY. Infosys said its operating margin stood at 20.1 per cent, down 0.9 per cent YoY and 0.4 per cent QoQ.
Infosys said it delivered the highest ever large deal value in the financial year 2024. This, CEO and and MD Salil Parekh, said reflects the strong trust clients have in the IT firm.
"Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support, he said.
Infosys announced a final dividend of Rs 20 per share for the financial year 2023-24. It also announced a special dividend of Rs 8 per share. With this, Infosys has declared a total dividend of Rs 46 for the year.