Infosys shares fall nearly 3%; market-cap drops by Rs 9,241 cr post Q4 earnings
Shares of IT major Infosys fell by nearly 3 percent on Monday as the company's March 2019 quarter earnings failed to cheer investors
Infosys shares closed the day at Rs 726.65 on the BSE, down 2.83 percent
During the day, it dropped 4.56 percent to Rs 713.70
The company's market valuation also plunged by Rs 9,240.6 crore to Rs 3,17,468.40 crore on the BSE
New Delhi: Shares of IT major Infosys fell by nearly 3 percent on Monday as the company's March 2019 quarter earnings failed to cheer investors.
The scrip closed the day at Rs 726.65 on the BSE, down 2.83 percent. During the day, it dropped 4.56 percent to Rs 713.70.
At the NSE, shares fell 2.61 percent to close at Rs 728.20.
The scrip was the major drag on both the key indices during the day.
In terms of volume, 10.71 lakh shares were traded on the BSE, while over 3 crore shares changed hands on the NSE during the day.
The company's market valuation also plunged by Rs 9,240.6 crore to Rs 3,17,468.40 crore on the BSE.
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 2019-20.
The company's revenue increased 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 2019-20 in constant currency terms.
It expects its operating margin in 2019-20 to be in the range of 21-23 percent.
Operating margin for 2018-19 stood at 22.8 percent.
Sanjeev Hota, AVP Research at Sharekhan by BNP Paribas, said Infosys has delivered a 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 a 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.
For Infosys, the story is over but uncertainty has just begun. The share buyback is not going to help in the near term
IT major, Infosys was the worst hit among the 30 Sensex constituents
Time for Vishal Sikka to have a drink with SRK, perhaps?