Infosys Q2 2013 disappoints again; investors hammer stock

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Infosys Q2 2013 disappoints again; investors hammer stock
Infosys: Quotes, News
BSE 1038.10BSE Quote1.15 (0.11%)
NSE 1038.30NSE Quote1.65 (0.16%)
It was yet another sequel to disappointing quarterly performance from IT heavvweight Infosys Technologies, which reported revenues and profits below market expectations.  However, its poor revenue guidance set the pace for a complete sell-off once again in the stock.

The company reported rupee revenues at Rs 9859 crores for Q2 2103, while the profit after tax has come in at Rs 2369 crores. The dollar revenues was slightly disappointing at $1797 million.

However, the revenue guidance of the company in dollar and in rupee terms stumped investors, which led to large scale selling in the stock. The company has given a dollar revenues guidance of $7.343bn for March 2013, which was just 5% and way below market expectations.

The stock was down 8% in early trade.

"Global economic uncertainties continue to face the industry," said S. D. Shibulal, CEO and Managing Director. "We have increased employee wages, used some of our cash in a transformational acquisition of a consulting business and enhanced our investment in R&D and solutions. These initiatives will position us well in the industry and provide a strong platform for future growth," the company said in a release.

The company has declared an interim dividend of Rs 15 per ADS (equivalent to an interim dividend of $0.28 per ADS, at the
prevailing exchange rate of 53.00 per US$). The record date for the payment of dividend is October 19, 2012.

Read more about: infosys
Story first published: Friday, October 12, 2012, 9:13 [IST]
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