Infosys shares slide nearly 3% on Q4 earnings, weak revenue guidance for FY25

Shares of IT giant Infosys Ltd fell nearly 3% in trade on Friday, April 19, a day after the company announced its earnings for the fourth quarter ended March 2024 (Q4FY24). The company’s consolidated net profit stood at ₹7,969 crore during the March quarter compared with ₹6,128 crore in the year-ago quarter.

Revenue from operations in Q4FY24 stood at ₹37,923 crore, up 1% compared with ₹37,441 crore in Q4FY23.

The company’s revenue in constant currency (CC) terms remained flat during the March quarter as compared with a year ago.

For full fiscal FY24, total revenue in CC terms grew 1.4% compared with a year ago. This fell short of the company’s growth forecast of 1.5-2% in CC terms for FY24.

Even for FY25, Infosys has given a weak revenue growth guidance of 1-3% in CC terms on a year-on-year basis.

The board of directors on Thursday also recommended a final dividend of ₹20 per equity share for the financial year ended March 2024, along with a special dividend of ₹8 per equity share.

The record date for the payment of final dividend and special dividend has been fixed as May 31, 2024.

After the results announcement, shares of Infosys declined as much as 2.9% on Friday to hit an intra-day low of ₹1,378.75 apiece on the National Stock Exchange of India (NSE). The stock has lost over 10% in the past month, but is still up 14% for the past year.

In a separate announcement, Infosys said that it would acquire a 100% stake in German firm in-tech in an all-cash deal for 450 million euros. In-tech is an engineering R&D services provider that specialises in the German automotive industry. It develops solutions in e-mobility, connected and autonomous driving, electric vehicles, off-road vehicles and railroad.