Infosys Q2 result: Here's how the stock is expected to open tomorrow

livemint.com:

Tata Consultancy Services failed to lift the sentiments on the IT pack, it was the turn of Infosys that reported its Q2 performance on Thursday. The nervousness in the market was visible as the Nifty IT Index was down 1.67% led by correction in share prices of TCS, HCL Technologies that were down 1.78-1.85%, while Infosys share price declined sharper 2.85%. Infosys reported revenues at ₹38,994 Crore were up 6.7% y-o-y and 2.8% sequentially.

The net profit at ₹6,212 was up 3.2% year-on-year and 4.5% sequentially. The operating profits at ₹8,274 crore also improved 5.1% year-on-year and 4.8% sequentially. The operating margins at 21.2% came lower than 21.5% in the year-old quarter though they improved by over 20.8% in the previous quarter.

Also Read- Infosys Q2 Results: Net profit inches up 3.2% on year to ₹6,212 crore Looking at the fact that there were limited expectations from Q2FY24 earnings performance of Infosys amidst the weak demand environment, which has not changed much since June, the earnings performance was not disappointing, said analysts. The constant currency revenues of Infosys at $4718 million also grew 3.6% year-on-year and 2.2% sequentially. Nevertheless, disappointment came with the cut in revenue guidance.

The company that had already cut its FY24 constant currency revenue growth guidance to 1-3.5% (from 4-7% earlier) further cut the upper band of its revenue guidance which now stands at 1-2.5%, The same indicates that the operating environment remains challenging said analysts and hence the road ahead still is not smooth. The guidance cut means the growth concerns have not bottomed out despite the company having a strong order book. Also Read- Infosys declares interim dividend of ₹18 per share Infos