Infosys Shares Surge 6% on Q3FY24 Earnings Beat Despite Revenue Dip

12 Jan 2024 , 11:26 AM

Infosys’ stock price surged over 6% in early Friday trade, marking its largest single-day gain since July 2020.

The rally followed better-than-expected Q3FY24 earnings for the IT services giant, despite a dip in both revenue and net profit.

Infosys shares reached a high of Rs 1,594.95 on the BSE during the trading session.

In Q3FY24, Infosys reported a 1.7% decrease in consolidated net profit to Rs 6,106 crore, with a 0.4% decline in revenue to Rs 38,821 crore, compared to Q2FY24.

Revenues in constant currency (CC) terms also dropped to $4,663 million.

Operating margin for the quarter stood at 20.5%, down 70 bps QoQ and 100 bps YoY.

The company closed large deals worth $3.2 billion in Total Contract Value (TCV), with 71% being net new. Attrition further decreased to 12.9%.

Infosys adjusted its FY24 revenue growth guidance to 1.5% – 2%, narrowing from the previous range of 1% – 2.5%, while maintaining the margin guidance at 20-22%.

Additionally, Infosys announced a definitive agreement to acquire InSemi, a leading semiconductor design and embedded services provider, for Rs 280 crore.

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