Infosys ADRs jump over 9% after robust Q1 numbers; that of Wipro up 4%
Following a strong Q1 performance and positive momentum in financial services deals in North America, the company has revised its FY25 revenue growth guidance upwards, projecting a 3-4% increase in constant currency, compared to the previous 1-3% ...
By Akash Podishetti, ETMarkets.com |
ANI
The American depository receipts (ADRs) of Infosys were up over 9% on the New York Stock Exchange (NYSE) after the first quarter results surpassed the estimates.
The ADRs were last trading at $22.29, up about 8.5% over the previous close.
The IT services exporter reported a robust 3.6% quarter-on-quarter revenue growth in constant currency terms, surpassing estimates, led by broad-based growth across verticals. The EBIT margin expanded by 100 basis points aided by Project Maximus, also beating expectations.
The company hiked its FY25 revenue growth guidance to 3-4% in constant currency from its prior view of 1-3%.
The management highlighted that the upward revision is due to the strong Q1 performance and financial services deals in North America, which is providing better visibility for the rest of the year.
"Notably, the company is experiencing early signs of improvement in Financial services in the US, which augurs well for the stock. The strong Q1 numbers and upward guidance revision is likely to lead to an upward revision in earnings estimates. We have a buy rating on the stock," said Shaji Nair, Research Analyst at Sharekhan by BNP Paribas.
The company joined industry leader TCS and smaller rival HCLTech in reporting a strong quarter, raising hopes for the IT sector, which has been struggling with sluggish demand post a pandemic-induced boom.
Consolidated revenue in the first quarter rose 3.6% to Rs 3,9315 crore, beating the analysts' average estimates of Rs 3,8915 crore. Net profit for the same period rose 7% to Rs 6,368 crore in the quarter ended June, which also beat analysts' estimates.
The banking and financial services posted a revenue rise of 0.3% after falling for four straight quarters.
Meanwhile, given the overall positive numbers so far for the IT companies, analysts will be keenly eyeing the numbers from Wipro, due to be released on Friday. Its ADRs were up about 4% on NYSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The ADRs were last trading at $22.29, up about 8.5% over the previous close.
The IT services exporter reported a robust 3.6% quarter-on-quarter revenue growth in constant currency terms, surpassing estimates, led by broad-based growth across verticals. The EBIT margin expanded by 100 basis points aided by Project Maximus, also beating expectations.
The company hiked its FY25 revenue growth guidance to 3-4% in constant currency from its prior view of 1-3%.
The management highlighted that the upward revision is due to the strong Q1 performance and financial services deals in North America, which is providing better visibility for the rest of the year.
"Notably, the company is experiencing early signs of improvement in Financial services in the US, which augurs well for the stock. The strong Q1 numbers and upward guidance revision is likely to lead to an upward revision in earnings estimates. We have a buy rating on the stock," said Shaji Nair, Research Analyst at Sharekhan by BNP Paribas.
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The company joined industry leader TCS and smaller rival HCLTech in reporting a strong quarter, raising hopes for the IT sector, which has been struggling with sluggish demand post a pandemic-induced boom.
Consolidated revenue in the first quarter rose 3.6% to Rs 3,9315 crore, beating the analysts' average estimates of Rs 3,8915 crore. Net profit for the same period rose 7% to Rs 6,368 crore in the quarter ended June, which also beat analysts' estimates.
The banking and financial services posted a revenue rise of 0.3% after falling for four straight quarters.
Meanwhile, given the overall positive numbers so far for the IT companies, analysts will be keenly eyeing the numbers from Wipro, due to be released on Friday. Its ADRs were up about 4% on NYSE.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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