Infosys shares fall 4% post-Q4 earnings; IT major refrains from giving revenue outlook for FY21
Shares of IT major Infosys on Tuesday declined nearly 4 percent after the company refrained from providing a revenue outlook for FY21, citing uncertainty amid Covid-19 outbreak that is expected to impact its business in the near-term
New Delhi: Shares of IT major Infosys on Tuesday declined nearly 4 percent after the company refrained from providing a revenue outlook for FY21, citing uncertainty amid COVID-19 outbreak that is expected to impact its business in the near-term.
The scrip fell 3.85 percent to Rs 627.70 on the BSE.
On the NSE, it dropped 3.90 percent to Rs 627.80.
After market hours on Monday, Infosys reported a 6.3 percent rise in consolidated net profit for March quarter, but refrained from providing a revenue outlook for FY21, citing uncertainty amid COVID-19 outbreak.
The country's second-largest IT services company - which saw revenue growing 8 percent to Rs 23,267 crore in the March quarter - anticipates a continued slowdown in the near-term influenced by a broad-based global economic recession.
"Our sense is that in the near-term we will see an impact on our business. We do not have a clear view of when the recovery will come back," Infosys CEO and MD Salil Parekh told reporters.
Parekh's views are similar to the sentiments echoed by peers like Wipro and Tata Consultancy Services -- both had cited future business uncertainty while announcing their quarterly earnings last week.
Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas, said Infosys reported below-than-expected revenue and EBIT margin performance.
Health officials in China said this week that more than one billion people, or 72 percent of the country's 1.4 billion citizens, have been fully vaccinated.
Mumbai reported less than 400 daily COVID-19 cases after a gap of six days and witnessed only one fatality for the first time since 31 August
Maharashtra's COVID-19 recovery rate stands at 97.06 percent, while the fatality rate is 2.12 percent