The Infosys logo.
Credit: Reuters Photo.
New Delhi: Shares of Infosys Ltd slumped nearly 5 per cent on Friday, wiping out Rs 37,639.21 crore from its market valuation after the company's second-quarter earnings failed to cheer investors.
The stock tanked 4.60 per cent to Rs 1,878.85 on the BSE. Intra-day, it plunged 5 per cent to Rs 1,870.
At the NSE, it dived 4.22 per cent to Rs 1,885.
The stock was the biggest laggard among the BSE Sensex and NSE Nifty firms.
The company's market valuation eroded by Rs 37,639.21 crore to Rs 7,80,126.10 crore.
In traded volume terms, 5.33 lakh shares of the firm traded on the BSE and 105.26 lakh shares on the NSE during the day. Infosys Ltd, India's second-largest IT services exporter, on Thursday, reported a nearly 5 per cent rise in its second-quarter net profit and raised revenue guidance for the year on broad-based recovery in demand, particularly from its key financial industry clients.
Consolidated net profit of Rs 6,506 crore in July-September -- the second quarter of the current 2024-25 fiscal year -- was 4.7 per cent higher than the year-ago earnings and 2.2 per cent more than the net profit in the preceding quarter, according to a company statement.
The technology services bellwether raised its revenue guidance for the full fiscal. It now expects constant currency revenue growth between 3.75 per cent and 4.5 per cent for the financial year April 2024 to March 2025, higher than its earlier guidance of 3 per cent to 4 per cent.
Infosys CEO and MD Salil Parekh termed it a "huge upward movement" in growth guidance. The upward revision comes on the back of a ramp-up of mega deals.
The company had raised its guidance in the June quarter from the 1-3 per cent range it started the year with.