Infosys stock cracks 8 per cent as management paints far from rosy picture

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Infosys stock cracks 8 per cent as management paints far from rosy picture
Infosys: Quotes, News
BSE 894.50BSE Quote17.35 (1.94%)
NSE 892.80NSE Quote17.4 (1.95%)
The Infosys stock fell almost 8 per cent in trade after its Chairman N Narayana Murthy painted a far from rosy picture in an investor concall late on Wednesday.

Murthy said that the revenue would be at the lower end of the guidance and expressed disappointment at the poor margins at Infosys in the last several quarters.

"We expect to be somewhere between 11.5 percent and 12 percent in our revenue growth. Much more like 11.5 percent compared to what is being proclaimed as the Nasscom industry growth rate and that is about 13 percent," a leading business portal reported.

The company was expected to at least match projections and that may not happen now. Also, revenue growth for the quarter ending March 31, 2014 is likely to be a disappointment."At the beginning of the quarter (Q4) we gave guidance for FY 2014. Several factors may result in our revenues to be near the lower end of guidance," Infosys CEO S D Shibulal said at a Barclays investor meet.

"At the broad level some of our clients have seen slowdown in their business, these are across various verticals leading to unanticipated project ramp downs and cancellations in Q4.

"Many of the factors that have led to the recent slowdown will continue to impact client spending at least in the initial part of fiscal year 2015," he said.

Infosys was one of the top performing stocks in 2013 as investor attention shifted to the return of Narayana Murthy as the Chairman. Also, economic recovery in the US saw most of the stocks from the sector scale dizzy heights.

Only a week back the stock hit a 52-week high of Rs 3849 along with a host of other IT stocks. Most of the leading brokerages have now downgraded the stock. Most of the other IT stocks including TCS, HCL Tech and Wipro have fallen along with Infosys. with inputs from PTI

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