Infosys shares tumbled by as much as 6 per cent in the early trade on the bourses today after the company’s announcement of its first quarter results failed to keep up to the market expectations.
The company’s net profit jumped nearly 16 per cent to Rs 1,722 crore and its revenues rose to Rs 7,485 crore in the first quarter ended June 30, 2011. However, market analysts said investors were expecting a better performance.
Reacting to the muted results, the scrip opened on a weak note at Rs 2,850, then fell further to a low of Rs 2,749.35, down 5.81 per cent from its previous closing price in the morning trade on the BSE.
A similar movement was witnessed on the National Stock Exchange, where the stock opened at Rs 2,850, then declined to a low of Rs 2,746.80, down 5.96 per cent from its previous close.
“The dip in the stock was largely because the Q1 results were below street expectations,” Ashika Stock Broking Research Head (Equities), Mr Paras Bothra, said, adding that, “Infosys in going into a bad patch, transition of management is also keeping a check on Infosys as far as valuation premium is concerned.”
Going forward, Infosys expects its revenues to be in the range of Rs 7,699 crore and Rs 7,810 crore (y-o-y growth of 10.8 per cent to 12.4 per cent) for the quarter ending September 30, 2011.
In addition, the company forecast its revenues would be in the range of Rs 31,777 crore and Rs 32,311 crore (y-o-y growth of 15.5 per cent to 17.5 per cent) for the fiscal ended March 31, 2012.