Infosys, Wipro ADRs fall over 4% following Q2 earnings on Thursday

American Depository Receipts (ADRs) of Infosys and Wipro fell by over 4% on Thursday to hit the day’s low of $22.02 and $6.11, respectively, following their Q2FY25 earnings.

ADRs are a form of equity shares created to simplify foreign investing for American investors.

India’s second-largest software exporter Infosys on Thursday reported a 5% growth in its consolidated net profit, reaching Rs 6,506 crore in the second quarter, compared to Rs 6,212 crore a year ago. The company revised its FY25 revenue guidance to 3.75%–4.5%. The upward revision of revenue guidance for the fiscal comes on the back of a ramp-up of mega deals. Earlier, the company had given revenue growth guidance of 3-4% for FY25.

Revenue from operations in the second quarter increased 5% year-on-year (YoY) to Rs 40,986 crore.

Revenue for the quarter grew 3.3% YoY in constant currency terms and 3.1% QoQ. Operating margins, meanwhile, saw a marginal decline of 0.1% YoY and were flat QoQ.

Operating margins for the quarter were supported by continued benefits from value-based pricing and utilisation, despite higher employee payouts.Meanwhile, IT major Wipro reported a 21% jump in net profit to Rs 3,209 crore for the quarter ended September 2024 versus Rs 2,646 crore logged in the year-ago period. The figure was higher than ET Now poll estimates of Rs 3,050 crore.Revenue from operations in the reported quarter stood at Rs 22,302 crore, marginally lower than Rs 22,516 crore posted in the corresponding quarter of the previous financial year.

Gross revenue was at Rs 22,300 crore ($2,662.6 million), an increase of 1.5% QoQ and a decrease of 1% YoY. IT services segment revenue was at $2,660.1 million, an increase of 1.3% QoQ and a decrease of 2% YoY. Non-GAAP2 constant currency IT services segment revenue increased 0.6% QoQ and decreased 2.3% YoY.

“We expect revenue from our IT Services business segment to be in the range of $2,607 million to $2,660 million,” Wipro said in a company statement, spelling out the outlook for the quarter ending December 31, 2024. This translates into sequential guidance of (-) 2.0% to 0.0% in constant currency.

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