Infosys stock tanks nearly 11% on muted revenue guidance
Shares of IT bellwether Infosys tumbled by about 11 per cent in early trade on Friday following weak revenue guidance by the company for the current fiscal 2012-13 disappointing investors.
The scrip, which carries the maximum weight on the BSE 30-share Sensex, opened the day on a poor note and fell further by 10.86 per cent to an early low of Rs 2,451.25 on the BSE.
However, at 1025 hrs, the stock was trading at Rs 2,499, down 9.13 per cent on the BSE. On the NSE, the stock had shed 10.93 per cent to Rs 2,450 after the results.
Infosys has 9.23 per cent weight in the 30-share Sensex pack, followed by RIL, which has 9.21 per cent weight.
Analysts said that the biggest disappointment was the revenue guidance for the next year, which is taken as a benchmark for the IT industry as a whole.
"The future dollar revenue guidance was muted and was even below the standard industry projection. This has led to selling pressure in the stock," Ashika Brokers Research Head Paras Bothra said.
Infosys reported 27.4 per cent jump in consolidated net profit at Rs 2,316 crore for the fourth quarter ended March 31, 2012.
This is against a net profit of Rs 1,818 crore in the March quarter of the previous fiscal (2010-11), Infosys said in a filing to the BSE.
However, on a quarter-on-quarter basis, the net profit was lower by 2.4 per cent. Infosys has warned of challenging times ahead.
"We had a very difficult quarter with revenues declining sequentially. The global currency market volatility continues to be a challenge for the industry." Infosys Chief Financial Officer and Member of Board V. Balakrishnan said.
The company expects revenue in the range of Rs 9,011 crore - Rs 9,100 crore for the quarter ending June 30, 2012, and in the range of Rs 38,431 crore-Rs 39,136 crore for the FY'13.
Other leading IT stocks also came under pressure, with TCS trading lower by 3.62 per cent and Wipro was down 2.89 per cent.
Led by massive sell-off in leading stocks, the BSE IT index was down 6.24 per cent at 5,553.27 at 09.50 am and was the biggest loser among the 13 sectoral indices.
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