Infosys shares crash by 10% on weak revenue outlook
FollowInfosys has dipped nearly 10% to Rs 1,060, its sharpest intra-day fall in past three years on the BSE, after the company cut full year revenue outlook for the financial year 2016-17(FY17) said a report in The Business Standard.
The company said it expects constant currency revenue for FY17 to grow between 10.5% -12%. The company had earlier given revenue guidance of 11.5-13.5% year-on-year.
The stock hit its lowest level since January 14, 2016 on the BSE. Earlier, on April 12, 2013, the stock tanked 22% during intra-day trade.
Infosys has reported 4.5% decline in consolidated net profit at Rs 3,436 crore for the quarter ended June 2016 (Q1FY17) on sequential basis. The company had profit of Rs 3,597 crore in March 2016 quarter and Rs 3,028 crore in June 2015 quarter.
Total income from operations grew 1.2% at Rs 17,535 crore in June quarter against Rs 17,322 crore in March quarter.
“We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1,” said Dr. Vishal Sikka, CEO.
At 10:44 AM, the stock was down 8.5% at Rs 1,076 on the BSE, as compared to 0.43% decline in the S&P BSE Sensex. A combined 14.75 million shares changed hands on the counter on the BSE and NSE.
