Infosys, one of India’s leading IT services providers, recently reported its Q3 results, which have had a mixed impact on the company’s share price. While the company’s share price had fallen by 28% in the previous five trading sessions, it has since recovered by 3%. This development has raised questions among investors about the company’s future performance and the potential reasons behind the recent decline.
The Q3 Results and Fundamental Outlook
Infosys’ Q3 results have been a mixed bag, with the company’s revenue declining by 1% sequentially. However, the company’s margins and sequential revenue in constant currency (CC) terms beat Street estimates, and the revision in FY24 revenue guidance came in broadly in line with analyst estimates. The net new deal wins for the quarter were a positive surprise, but analysts are mixed over whether the worst might be behind for the second-largest IT major, as there were no signs of discretionary demand revival as yet. Nomura India said Infosys beat Street expectations as its December quarter revenue declined 1% sequentially. The EBIT margin at 20.5% was in line with the Street estimate. The deal wins of $3.2 billion were down 3% YoY, but the net new component in deal wins at $2.3 billion impressed analysts. The company tightened its revenue growth guidance band to 1.5-2%.The Impact on Share Price
The 28% drop in Polycab’s share price over the past five trading sessions raised concerns among investors about the company’s financial health and prospects. The decline in share price could have been influenced by various factors, such as market sentiment, economic conditions, or company-specific issues. The 3% increase in Polycab’s share price, following a 28% drop, indicates a potential turnaround in the company’s fortunes. This recovery could be attributed to several factors, including positive company news or developments that have led to a more optimistic outlook, a shift in market sentiment, or economic factors such as a weakening of the rupee against the dollar, which could have influenced the stock’s performance.What Investors Should Do
Investors holding Infosys shares should closely monitor the company’s performance and market developments to make informed decisions about their investment. It is essential to stay updated on the latest news, financial results, and market trends to ensure that the company remains a suitable investment option. For those considering investing in Infosys, it is crucial to conduct thorough research and analysis of the company’s financial health, management’s track record, and industry trends. By doing so, potential investors can make an informed decision about whether to invest in Infosys and benefit from its potential for growth and recovery.Source- businesstoday
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