Infosys and Wipro ADRs Fall Despite Positive Q2 Results
After their Q2 FY25 results, Infosys and Wipro’s American Depositary Receipts (ADRs) suffered a significant decline on the New York Stock Exchange. Despite a revision to its FY25 earnings projection, Infosys ADR dropped 3% to $21.6. Wipro ADRs also dropped by about 3% to $5.9, the highest level in ten quarters, even though they booked $1.5 billion worth of major deals. ADRs also fell as Wall Street prepared for a strong start that propelled the Dow Jones and S&P 500 to all-time highs.
ADR is a vehicle that enables international businesses to conduct business with US banks, giving them access to trades like the US currency and visibility.
Infosys Q2 Performance
India’s second-largest IT services company Infosys reported a 4.7% increase in net profit, to ₹6,506 crore, with operating income up 5.1% to ₹40,958 crore with 3.3% year-on-year currency growth in cash flow daily. Infosys’ EBIT for the quarter stood at ₹8,649 crore, reflecting a sequential growth rate of 4.4%. In dollar terms, the company posted revenue of $4.894 billion, up 3.8% from the previous quarter.
Apart from a short-term dividend of ₹21 per share, Infosys raised its FY25 earnings guidance for the second consecutive year, now expecting growth from 3.75% . to 4.5% The upward turnover was due to stronger budgetary demand and a series of major projects A total of 2,500 employees were added, reversing the downsizing trend.
Wipro Q2 Performance
For the July–September period, Wipro’s net profit increased 21.2% year over year to ₹3,208.8 crore. Revenue, however, decreased marginally to ₹22,301.6 crore. A 1:1 bonus issuance of ₹2 per share was announced by the IT company; the record date will be disclosed later.
Wipro had 233,889 workers, although its attrition rate increased somewhat to 14.5%. Wipro’s operational cash flow increased 10.5% year over year to ₹42.7 billion, or 132.3% of the company’s net income for the quarter, despite the decline in sales.
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