Fri Jan 17 06:14:44 UTC 2025: ## Infosys Shares Plunge 5% After Q3 Earnings Report

**Mumbai, India** – Infosys, India’s second-largest software services provider, saw its share price plummet nearly 5% on Friday, following a significant drop in its American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE). The decline, as much as 4.9% to ₹1,832.00 on the BSE, comes in the wake of the company’s Q3 FY25 earnings announcement on January 16th.

Infosys’ ADRs closed 5.77% lower at $21.57 on Thursday, indicating negative sentiment from US investors regarding the results. While the company reported a 4.6% increase in net profit to ₹6,806 crore and a 2% rise in revenue to ₹41,764 crore for the quarter ended December 2024, the market reaction suggests concerns over certain aspects of the performance.

Despite upward revisions to its FY25 revenue growth guidance (from 3.75%-4.5% to 4.5%-5%), analysts offer mixed interpretations. While some, like Dipeshkumar Mehta of Emkay Global Financial Services, highlighted better-than-expected revenue growth and maintained a ‘Buy’ rating with a ₹2,150 target price, others point to potential sequential decline in Q4. The decreased Total Contract Value (TCV) of $2.5 billion (down 22% YoY) also raises questions about future growth prospects.

Sagar Shetty of StoxBox acknowledged strong financial performance exceeding expectations, citing robust revenue growth and margin improvement. However, he emphasized that the management’s outlook on discretionary spending and deal pipeline will be crucial in assessing future demand.

The contrasting views highlight the complexities of interpreting Infosys’ Q3 results. While the company reported improved financials and raised its revenue guidance, the market’s negative reaction underscores investor apprehension about the sustainability of this growth in the coming quarters.

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