Infosys shares tank 9%; mcap plunges Rs 23,459 cr

PTI Mumbai | Updated on January 17, 2018 Published on July 15, 2016

Infosys shares today plunged nearly 9 per cent, wiping out Rs 23,459 crore from its market valuation, after the company’s June quarter results failed to enthuse investors following a cut in annual sales forecast.

The stock plummeted 8.81 per cent to settle at Rs 1,072.25 on the BSE. During the day, it tumbled 9.99 per cent to Rs 1,058.30.

On the NSE, it tanked 8.81 per cent to end at Rs 1,072.55.

Led by the steep fall in the stock, the company’s market valuation declined by Rs 23,459.11 crore to Rs 2,46,289.89 crore.

During the day, the stock was the worst performer among the blue-chips on both Sensex and Nifty.

On the volume front, 27.11 lakh shares of the company were traded on the BSE and over 3 crore shares changed hands on the NSE during the day.

“Infosys posted numbers lower-than-expected,” said Sarabjit Kour Nangra, VP, Research- IT, Angel Broking.

“Q1 FY17 has been disappointing but this has come after couple of good quarters,” brokerage firm Prabhudas Lilladher said in a report.

Net profit

India’s second-largest IT company Infosys today reported a 13 per cent jump in its June quarter net profit on new client addition, but cut its annual sales forecast.

Consolidated net profit of Rs 3,436 crore in the April-June quarter was 13.4 per cent higher than Rs 3,028 crore in the same period a year ago.

Infosys has forecast a 10.8-12.3 per cent sales growth in the US dollar terms for 2016-17, down from the previous forecast of 11.8-13.8 per cent as companies worldwide rein in IT spending and shift to cloud-based software services.

Revenue guidance

The full-year revenue guidance at 10.5-12 per cent in constant currency terms is lower than April forecast of 11.5-13.5 per cent.

Industry body Nasscom also had recently lowered its growth forecast for software exports to 10-12 per cent in the year to March 31, 2017, down from 12-14 per cent in 2015-16.

Infosys’ consolidated revenue for April-June was up nearly 17 per cent year-on-year at Rs 16,782 crore.

Meanwhile, selling was also seen in other IT stocks, where Hexaware Tech tumbled 3.72 per cent, TCS (3.11 per cent), Wipro (2.81 per cent), Tech Mahindra (2.72 per cent) and HCL Tech (1.44 per cent) on the BSE.

Consequently, the BSE IT index fell 5.35 per cent to end at 10,608.40.

Published on July 15, 2016
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