IT major Infosys today reported a net profit of Rs 3,436 crores for the quarter ending June 30, 2016, which was lower than estimates. Most analysts had expected the company to report a net profit of near Rs 3,450 crores for the quarter.
The drop in net profits in this quarter against the last quarter was largely on account of a margins hit, due to a partial increase in wage hike. Dollar revenues saw a big miss at at $2501 million, as against street estimates of $2550 million. The stock markets did not like the big dollar revenue miss and the stock fell 7% per cent.
Infosys reported rupee revenues in Q1 of Rs 16,782 crores, as against a revenue of Rs 16,550 crores in the previous quarter. This was a slightly better than expections of revenues of around Rs 17,000 crores.
This is the second IT company to report its results after TCS reported its numbers after market hours on Thursday. TCS had a good quarter after under performing over the last few quarters. Read more on the TCS results here
The shares of Infosys were last trading at Rs 1102 on the National Stock Exchange,which was down a huge 6.58 per cent. It dragged shares of all other IT companies lower and with it the Sensex.