Infosys shares down by 4.50% after Q2 results disappoint the market

Shares of Infosys Ltd slumped 4.50 percent on Friday morning after the company's second-quarter earnings failed to cheer investors.

The stock tanked 4.50 percent to ₹1,880.80 on the BSE.

At the NSE, it dived 4.44 percent to ₹1,880.65.

The stock was the biggest laggard among the BSE Sensex and NSE Nifty firms.

The company's market valuation eroded by ₹31,327.94 crore to ₹7,86,437.37 crore during the morning trade.

The decline in the bellwether stock dragged the markets lower. The BSE benchmark tanked 570.45 points to 80,436.16 in early trade. The NSE Nifty slumped 178.3 points to 24,571.55.

Infosys Ltd, India's second-largest IT services exporter, on Thursday, reported a near 5 percent rise in its second-quarter net profit and raised revenue guidance for the year on broad-based recovery in demand, particularly from its key financial industry clients.

Consolidated net profit of ₹6,506 crore in July-September, the second quarter of the current 2024-25 fiscal year, was 4.7 percent higher than the year-ago earnings and 2.2 percent more than the net profit in the preceding quarter, according to a company statement.

Technology services Bellwether for the second consecutive quarter raised its revenue guidance for the full fiscal. It now expects constant currency revenue growth between 3.75 percent and 4.5 percent for the financial year April 2024 to March 2025, higher than its earlier guidance of 3 percent to 4 percent.

Infosys CEO and MD Salil Parekh termed it a "huge upward movement" in growth guidance. The upward revision comes on the back of a ramp-up of mega deals.

The company had raised its guidance in the June quarter from the 1-3 percent range it started the year with.