Shares of Infosys (NS:INFY) fell over 4% in early trade this Friday, reacting to the company's revised revenue guidance for FY24. The tech giant lowered its revenue projections from 1-3.5% to 1-2.5%, despite reporting a second-quarter net profit increase of 3.17% to Rs 6,212 crore ($751 million), according to its Q2FY24 earnings report.
The company's year-on-year consolidated revenue growth was reported at 6.7%, amounting to Rs 38,994 crore ($4,718 million). Sequentially, the revenue saw a growth of 2.2%. The profits also marked a slight rise from $748 million recorded in September 2022.
Brokerage firm StoxBox attributed the revised revenue guidance to lower volumes stemming from reduced spending and project delays. Despite this cautious outlook, Choice Broking maintained a target price of Rs 1,655 for Infosys shares. The firm cited the strong order book of Infosys as a reason for giving an 'add' rating, suggesting a potential upside for the stock.
InvestingPro data provides some additional context to the company's performance. Infosys has a market cap of $70.87 billion, with a P/E ratio of 23.65, suggesting that the stock is trading at a high P/E ratio relative to near-term earnings growth, as pointed out by InvestingPro Tips. The company's revenue for the last twelve months was reported at $18.39 billion, demonstrating a growth of 8.32%.
InvestingPro Tips also highlights that Infosys has been aggressively buying back shares and has consistently increased its earnings per share. This is supported by the fact that four analysts have revised their earnings upwards for the upcoming period. The company has also maintained dividend payments for 24 consecutive years, contributing to a dividend yield of 2.19% as per InvestingPro data.
For more detailed insights and additional tips, consider subscribing to InvestingPro. The platform offers an extensive list of 18 additional tips for Infosys, helping investors make informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.