Infosys ADR plunges 9% in pre-market session on NYSE; here’s why
Infosys’ sharp downward revision of its FY24 revenue guidance seems to have disappointed the market as the American Depositary Receipts (ADR) of the company suffered massive losses in the pre-market session on the New York Stock Exchange (NYSE). Infosys ADR fell almost 9 per cent to $16.20 in the pre-market session on NYSE.
An American Depositary Receipt (ADR) is like a special certificate issued by a US bank, and it represents the shares of a foreign company. These ADRs can be traded on US stock markets, just like regular shares of US companies.
Infosys reported a mixed set of numbers on Thursday with profit and operating margin figures below expectations.
The IT major sharply trimmed its revenue guidance for FY24 to 1-3.5 per cent from 4-7 per cent amid an increasingly challenging demand environment, while operating margin or earnings before interests and taxes (EBIT) guidance was left unchanged at 20 per cent to 22 per cent.
In a post-earnings press conference today, Infosys MD and CEO Sahil Parekh said, ‘’See some clients stopping or slowing down transformative programs. We are changing revenue growth guidance keeping these factors in mind.” he added.
The IT company’s consolidated revenue from operations stood at ₹37,933 crore during the quarter ended June from ₹34,470 crore in Q1FY23. In constant currency terms, revenue grew by 4.2 per cent year over year, and by one per cent sequentially.
The company said attrition declined to 17.3 per cent during Q1FY24 from 28.4 per cent in the same quarter last year and 20.9 per cent in Q4FY23. However, the total number of employees declined on a quarter-on-quarter basis.
As per the regulatory filing, the total number of employees was 3,36,294 as on June 30, 2023, against 3,35,186 employees as on June 30, 2022, and 3,43,234 employees as on March 31, 2023.
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Updated: 20 Jul 2023, 06:15 PM IST
