India’s prominent IT giant, Infosys Ltd, faced a notable decline in its American Depository Receipt (ADR) shares, plummeting over 4% to $15.68 on the New York Stock Exchange (NYSE) when trading commenced on April 17. This drop comes on the heels of a disappointing fourth-quarter earnings report released after the Indian markets closed.
Infosys ADR Shares Decline
At the start of trading, Infosys ADR shares were valued at $15.68, a stark contrast to the previous closing price of $16.58. By 12:36 p.m. EDT, the shares had slightly recovered to $16.25, indicating a 1.96% decrease from the previous day. This fluctuation highlights the volatility of the IT sector in response to corporate earnings announcements.
- Current ADR Price: $15.68
- Previous Closing Price: $16.58
- Price Recovery by 12:36 p.m.: $16.25
Overview of Q4 Results
In its latest financial report, Infosys revealed a significant 11.75% dip in net profit, recording ₹7,033 crore for the fourth quarter of FY 2024-25, down from ₹7,969 crore during the same timeframe last year. Despite the profit decline, the company reported an 8% year-on-year increase in revenue from core operations, reaching ₹40,925 crore compared to ₹37,923 crore from the previous year.
Salil Parekh, CEO and Managing Director of Infosys, commented on the company’s performance, stating, "Our results demonstrate strong revenue growth, improved operating margins, and record free cash flow generation."
Dividend Announcement
In conjunction with its earnings report, Infosys declared a final dividend of ₹22 per share for the fiscal year ending on March 31, 2025. This decision was made during a board meeting held on April 16-17, 2025.
- Dividend Amount: ₹22 per share
- Record Date: May 30, 2025
- Payment Date: June 30, 2025
Revenue Guidance Adjustments
Looking ahead, Infosys has revised its revenue growth forecast for the fiscal year 2025-26 to a modest 0-3% range, down from the previously estimated 4.5-5% for FY 2024-25. This adjustment reflects the ongoing uncertainties in global markets and a cautiously optimistic outlook for business conditions.
As Infosys navigates these challenges, investors will be keenly watching future developments to gauge the company’s recovery and growth trajectory in the competitive IT landscape.
For more insights on Infosys’s financial performance and market strategies, explore our related articles on Infosys Financial Reports and IT Sector Trends.
