Infosys shares drop nearly 5% as firm's March 2019 quarter earnings fail to cheer investors
Shares of IT major Infosys fell nearly 5 percent on Monday after the company's March 2019 quarter earnings failed to cheer investors
IT major Infosys on Friday posted a 10.5 percent rise in consolidated net profit at Rs 4,078 crore for the March 2019 quarter
The company gave guidance of 7.5-9.5 percent growth in revenue for FY2019-20
Infosys shares were the major drag on both the key indices in early trade
New Delhi: Shares of IT major Infosys fell nearly 5 percent on Monday after the company's March 2019 quarter earnings failed to cheer investors.
The scrip made a weak opening and dropped 4.56 percent to Rs 713.70 as the trade progressed on the BSE.
At the NSE, shares declined 4.70 percent to Rs 712.60.
The scrip was the major drag on both the key indices in early trade.
IT major Infosys on Friday posted a 10.5 percent rise in consolidated net profit at Rs 4,078 crore for the March 2019 quarter, and guided towards 7.5-9.5 percent growth in revenue for FY2019-20.
Infosys saw its revenues increase 19.1 percent to Rs 21,539 crore in the March 2019 quarter from Rs 18,083 crore in the year-ago period.
The country's second-largest software services firm said it expects its topline to grow 7.5-9.5 percent in FY 2019-20 in constant currency terms.
Infosys expects its operating margin in FY20 to be in the range of 21-23 percent.
Margins for FY19 stood at 22.8 percent.
Sanjeev Hota, AVP Research at Sharekhan by BNP Paribas, said Infosys has delivered mixed set of earning performance but its revenue guidance is a tad "conservative".
"Deal wins remain strong and management has guided for 7.5-9.5 percent revenues growth for FY20E (estimate), which we believe is bit conservative.
"Nevertheless, the company delivered strong growth on digital revenues front. On the flip side, management has lowered the margins guidance to 21-23 percent, which was below our expectations and also attrition inched up during the quarter," he said.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.