Infosys Q3 results: Tech giant sees ADRs jump by 5% despite decline in net profit

livemint.com:

₹6,106 crore in the third quarter of FY24. Despite a significant decline in its net profit, the Infosys shares, listed on the US stock market, jumped as much as 4.9% during the opening trade on Thursday, January 11. India's second-largest IT firm fell below market expectations and reported 1.7% sequential fall in its net profit to ₹6,106 crore on sluggish demand from clients and cut its annual sales forecast.

Tech giant's consolidated revenue from operations increased 1.3 per cent to ₹38,821 crore during the third quarter of the ongoing fiscal from ₹38,318 crore a year ago. Infosys bagged deals worth USD 3.2 billion, including a mega deal during the quarter, which included 71 per cent net new wins. "Our performance in the third quarter was resilient.

Large deal wins were strong at USD 3.2 billion, with 71 per cent of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency, and automation. This is the highest deal win in the nine quarters that the company has ever had," Infosys CEO and MD Salil Parekh said. He said there has been no change in clients' behaviour on spending during the reported quarter.

During the reported quarter, Infosys lost USD 1.5 billion deal focussed on artificial intelligence from an unnamed IT giant. Parekh said the company has one lakh AI-trained officials and the interest in the segment is growth though revenue. Infosys' step-down subsidiary Infosys McCamish Systems was hit by a cyber attack in November, in which the company's revenues suffered a USD 30-million hit.