Infosys Hits 52-Week High with Strong Q1 Results and Upgraded Guidance

Infosys recently hit a 52-week high after announcing better-than-expected results for the first quarter of FY25. The company’s net profit and revenue exceeded analysts’ expectations, leading to a 5% rise in its share price on July 19. Infosys’ American Depositary Receipts (ADRs) also surged over 8% on the New York Stock Exchange.

For the April-June quarter, Infosys reported a 3.7% increase in revenue from operations, reaching ₹39,315 crore. However, its consolidated net profit fell by about 20% to ₹6,368 crore, mainly due to a high base effect from a tax refund in the previous quarter. Despite this, the results were still above market estimates.

A poll of 10 brokerages had predicted Infosys’ net profit to be ₹6,248 crore and revenue to be ₹38,850 crore. The company’s performance surpassed these figures, boosting investor confidence.

In addition to the strong quarterly results, Infosys raised its revenue growth guidance for the current fiscal year to 3-4%, up from the previous 1-3%. This revision indicates signs of recovery and a positive outlook for the company’s future performance.

Brokerage firm Nuvama Institutional Equities highlighted the management’s optimistic stance, expecting a recovery in the US Banking, Financial Services, and Insurance (BFSI) sector for Infosys. They also anticipate a stronger first half of the fiscal year compared to the second half.

On the other hand, Motilal Oswal Financial Services noted that the upgraded revenue guidance might be driven by a one-time spike in the India business and inorganic growth. However, they believe that strong deal wins should improve Infosys’ medium-term growth outlook. The firm also mentioned that Infosys has maintained its margin guidance and sees potential for improvement in the medium term.

Overall, Infosys’ impressive Q1 results and upgraded revenue guidance have positively impacted its stock performance, reflecting investor confidence in the company’s growth prospects.