Infosys Q4 result - NYSE ADR falls on muted earnings, guidance
1 min read . Updated: 13 Apr 2023, 09:20 PM IST
Premium- The ADRs of IT major Infosys tumbled by more than 9% on the New York Stock Exchange after a rather disappointing Q4 financial results
The American Depository Receipts (ADRs) of IT major Infosys tumbled by more than 9% on the New York Stock Exchange on Thursday following the release of disappointing fourth-quarter financial results and a below-average guidance for FY24.
Infosys US-listed shares sank as much as 9% at $15.53, their lowest since December 2020. While its India-listed stock closed down 2.7% ahead of the results.
Infosys reported lower-than-expected growth in the fourth quarter net profit. The company also gave a weak growth guidance of revenue at 4-7% for FY24.
The software services firm posted 7.8% growth year-on-year in net profit at Rs6,128 crore in the January-March quarter, but down 7% from the profit in the preceding quarter.
The FY23 revenue growth stood at 15.4% lower than the guidance.
“In Q4, we saw changes in the market environment. We saw unplanned project ramp-downs in some of our clients, and delays in decision making which resulted in lower volumes. In addition, we had some one-time revenue impact," Infosys chief executive Salil Parekh said on Thursday.
“While we saw some signs of stabilisation in March the environment remains uncertain," added Parekh.
The company said its operating margin fell to 21.1% in the fourth quarter of fiscal year 2023, and is expected to stay between 20% and 22% in fiscal year 2024.
Infosys bagged large deals worth $2.1 billion in the March quarter, less than the $2.3 billion it won a year ago.