Infosys Shares Plunge 4.5% After Earnings

New Delhi, Oct 18 (PTI) Shares of Infosys Ltd slumped 4.50 per cent on Friday morning after the company's second quarter earnings failed to cheer investors.

The stock tanked 4.50 per cent to Rs 1,880.80 on the BSE.

At the NSE, it dived 4.44 per cent to Rs 1,880.65.

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

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

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 per cent 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 Rs 6,506 crore in July-September -- the second quarter of current 2024-25 fiscal year -- was 4.7 per cent higher than the year-ago earnings and 2.2 per cent 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 per cent and 4.5 per cent for the financial year April 2024 to March 2025, higher than its earlier guidance of 3 per cent to 4 per cent.

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 per cent range it started the year with.