Infosys Technologies, the country’s second largest IT major, today fell by over seven per cent in the morning trade on bourses, as it released its fourth quarter results and revenue guidance for FY12, below market expectations.
The company, which reported a 13.62 per cent jump in consolidated net profit at Rs 1,818 crore for the fourth quarter ended March 31, 2011, expects revenue in the range of Rs 31,727-32,270 crore for the financial year FY’12.
Shares of the IT bellwether tumbled by 7.28 per cent to Rs 3,065.10 a share on the Bombay Stock Exchange. The stock received a similar beating on the National Stock Exchange, where it plunged by 7.34 per cent to Rs 3,063.25 a share.
Market experts attribute the sharp fall in the stock to below-the-market revenue guidance expectation for FY12.
“The stock market was not eyeing for the numbers for the fourth quarter, what they were waiting for was a strong revenue guidance for FY12 which the company failed to provide,” the Ashika Stock Broking Research Head, Mr Paras Bothra, said.
According to Motilal Ostwal Securities, “the quarter ending March is seasonally the weakest for the industry, as client usually finalise their budget spends for the next year, during this period.”
The Religare Securities Ltd Executive Vice-President & Head - Retail Research, Mr Rajesh Jain, said: “the fall in the stock is a knee-jerk reaction to the poor revenue guidance for FY12.”