Infosys results disappoints; stock goes into a tailspin

Business

oi-Sunil

By Sunil Fernandes

Published: Friday, April 13, 2012, 14:40 [IST]

IT major Infosys Technologies kicked off the earnings season on a disappointing note, with revenues for the fourth quarter and the guidance for FY 13 coming in as a major setback for investors.

The revenues came in far below expectations. The Dollar revenues for the fourth quarter 2011-2012 came in at $1771 million , as against market expectations of dollar revenues of at least $1825 million. The net profit for the fourth quarter at Rs 2316 crores, saw a drop of 2.36% over the previous quarter.

The quarterly revenues came in at Rs 8852, against market expectations of at least Rs 9200 crores.

What disappointed the street however was the revenue guidance for FY 13, which has been estimated at just 8 to 10% for FY 13, which is way below the NASSCOM guidance for the software industry, which it says would grow between 10 to 14%.

The Infosys stock tanked today as the results disappointed investors. On the NSE the stock was traded at Rs 2491.90, down a staggering 9.39%. The poor Infosys results also impacted other IT stocks , including those of Wipro, HCL and TCS.

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