Infosys disappointed the street with its quarterly numbers just like other peers including TCS, HCL Tech and Wipro.
Revenues Way Below Expectations
Infosys Q4 dollar revenues were placed at USD 2159 mn, this was way below expectations. The revenues in constant currency terms at Rs 13,411 crores was again good short of the street expectations of around Rs 13,800 crores.
Net Profits Lagged Estimates
Net profits at the company lagged street estimates and came in at Rs 3097 crores. Analysts were expecting net profits of at least Rs 3300 crores.
Huge build-up of long positions
There was already a huge build-up in long positions at the counter, hoping for a good set of results. However, that did not happen which saw huge unwinding in the counter. Even as we write brokers say there was still a huge sell quantity in the counter.
Well, this had nothing to do with the Infosys results, but the fact that there were reports that the government had issued a circular with regards to the Minimum Alternate Tax that FIIs have to pay. This saw sentiments in the stock market taking a turn for the worse. Of course, it had nothing to do with the Infosys results.
There were positives from the Infosys results, which included a guidance in revenues of 10-12 per cent in constant currency terms, which is again slightly lower then the NASSCOM guidance of 12-14 per cent for the industry.