Shares of Infosys Ltd fell as much as 4.7 per cent to Rs 712.6, marking its sharpest daily drop since October 11, on weak FY20 margin guidance.
The software services exporter forecast an operating margin of 21-23 per cent for FY20, after reporting a 10.4 per cent rise in Q4 profit on Friday.
Wells Fargo has called the guidance 'light'; says the operating margin guidance was below its expectation of 22-24 per cent. It adds that revenue growth guidance of 7.5-9.5 per cent may be a touch below what the Street was looking for.
Investec had downgraded the stock to 'hold', and had cut TP to Rs 750 from Rs 784 earlier. Nomura says margin risks remain, and has downgraded Infosys to 'reduce' from 'neutral'.
The stock was a drag on the NSE index, which is up 0.21 per cent as of 0353 GMT.
Shares of Tata Consultancy Services (TCS) gained nearly 4 per cent after the company reported 17.7 per cent growth in consolidated net profit for the March 2019 quarter. The scrip after making a positive opening further jumped 3.56 per cent to Rs 2,085.60 on the BSE. At the NSE, shares of the company rose by 3.64 per cent to Rs 2,088.
On the volume front, one lakh shares of the company were traded on the BSE and over 28 lakh shares on the NSE, during the morning trade. “TCS beat street/our estimates on revenues,” Emkay Global Financial Services said in a report on Saturday.
TCS Friday reported 17.7 per cent growth in consolidated net profit at Rs 8,126 crore for the March 2019 quarter. This is against a net profit of Rs 6,904 crore in the year-ago period, TCS said in a regulatory filing.
Revenue of the firm grew 18.5 per cent in the quarter under review to Rs 38,010 crore from Rs 32,075 crore in the corresponding period last fiscal, it added.
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