Infosys shares plunge 8%, mcap down Rs 49,159 cr
Cut in revenue guidance for FY24 takes toll on software major’s share price
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New Delhi Shares of Infosys tanked over 8 per cent on Friday after the company reported a lower-than-expected 11 per cent rise in net profit for the June quarter and slashed its FY24 growth outlook.
The stock plunged 8.18 per cent to settle at Rs1,330.40 on the BSE. During the day, it tumbled 9.47 per cent to Rs 1,311.60. At the NSE, shares of the company tanked 7.73 per cent to finish at Rs 1,337.45. The company’s market capitalisation (mcap) fell by Rs49,159.03 crore to Rs5,52,141.59 crore. It was the biggest laggard among both Sensex and Nifty firms. The 30-share BSE Sensex fell 887.64 points or 1.31 per cent to finish at 66,684.26, while the NSE Nifty tumbled 234.15 points or 1.17 per cent to settle at 19,745. “The weak guidance from Infosys cast a shadow over the outlook of the Indian IT sector, causing a delay in Nifty’s pursuit of the 20,000 mark,” said Vinod Nair, Head of Research at Geojit Financial Services.
Infosys on Thursday reported a lower-than-expected 11 per cent rise in net profit for the June quarter and delivered a shocker as it slashed its FY24 growth outlook to 1-3.5 per cent on delayed decision-making by clients amid global macro uncertainties. The net profit came in at Rs5,945 crore for the quarter ended June 2023, compared to Rs5,362 crore in the year-ago period. The company posted revenue growth of 10 per cent to Rs37,933 crore during the just-ended quarter. The country’s second-largest IT services company -- which competes with the likes of TCS, Wipro and others -- drastically lowered its revenue guidance for the full year to 1-3.5 per cent in constant currency, down from 4-7 per cent it had projected earlier. Seen sequentially, its net profit declined 3 per cent over the March quarter, while the revenue rose 1.31 per cent. Shares of other IT firms -- TCS, HCL Tech, Wipro and Tech Mahindra -- also ended in the negative territory. The BSE IT index plunged 4.40 per cent to 30,099.24 tracking a sharp decline in its components. Last week, TCS, HCL Tech, Wipro and LTIMindtree announced their first-quarter results.
