Infosys Q2 Net Profit At Rs 3,603 Crs; Guidance Sees Stock Plunge 4%

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Infosys today reported quarterly numbers that beat estimates in terms of net profits and a large section of investors and analysts had not predicted that.

Infosys Q2 Net Profit At Rs 3,603 Crs; Guidance Sees Stock Plunge 4%
The company reported a net profit of Rs 3,603 crores for the quarter ending Sept 30, 2016, as against expectations of around Rs 3,500 crores. The consolidated EBIT margin was placed at 24.9 per cent. said

The company's net revenues stood at Rs 17,310 crore for the quarter ending Sept 2016, as against Rs 16,782 crore revenue reported in the June quarter.

Dollar revenues was at 2587 million for the quarter ending Sept 30, 2016, which was as per expectations. But, what spooked analysts and investors was the  revenue guidance, which was placed at just 8-9 per cent in constant currency terms. The stock plunged 4% at Rs 1011, and hit a new 52-week low of Rs 1007, following the guidance figure being flashed.

The company had already lowered its revenue guidance to 10.5 percent-12 percent in constant currency from 11.5-13.5 percent in last quarter.

On Thursday, TCS reported numbers that lagged estimates.

While the results may not largely match expectations, it is a known fact that it was going to be a difficult quarter for most IT companies.

Client spends have reduced dramatically. On Thursday TCS CEO had this to say, "It has been an 'unusual Q2' for TCS. Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in discretionary spending this quarter."

The shares of Infosys were last trading at Rs 1011.

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