Infosys Profits Soar Amid Stock Slip: A Mixed Market Reaction

Infosys shares fell nearly 6% despite a rise in third-quarter profits and an increased annual sales forecast. The decline led to a market dip, affecting the Sensex and Nifty. Mainly driven by demand in the BFSI sector, Infosys reported an 11.46% profit rise, with revenues increasing by 7.6%.

Shares of Infosys suffered a near 6% drop on Friday following profit-taking after the third-quarter earnings announcement.

The stock saw a 5.73% decrease to Rs 1,815.70 on the BSE, while the NSE recorded a 5.88% fall to Rs 1,815.

The decline weighed heavily on the markets, causing a 752.55-point slump in the 30-share BSE benchmark Sensex, with the NSE Nifty also falling by 198.30 points.

Despite the setback, Infosys, India's second-largest IT services firm, reported a notable 11.46% rise in third-quarter net profits, spurred by escalating demand. This promising trend led the company to enhance its annual sales forecast for the third time this fiscal year.

The company's net profit surged to Rs 6,806 crore in the October-December period compared to Rs 6,106 crore in the previous year, with revenues climbing 7.6% to Rs 41,764 crore.

Infosys uplifted its full-year revenue growth projection from 3.75-4.5% to 4.5-5%, with CEO Salil Parekh expressing optimism due to a noticeable increase in discretionary activity within financial services, retail, and consumer products.

The BFSI sector, contributing approximately one-third of Infosys' revenue, achieved a 6.1% growth, driven by rising US demand despite a typically slow December quarter for IT due to holidays and reduced work days.

(With inputs from agencies.)