Infosys stock extends post results sell-off

Continuing to fall for the second straight session on Wednesday, shares of Infosys lost over 2 per cent, after the company slashed its dollar revenue guidance for the current fiscal.

Shares of the software services major fell by 2.12 per cent to settle at Rs. 1,098.65 on BSE. During the day, it dipped 3.15 per cent Rs. 1,087.10. At NSE, the stock slipped 2 per cent to close at Rs. 1,099.40.

In the previous session the stock had lost 4 per cent. The company’s market valuation has declined by Rs. 15,894.17 crore to Rs. 2,52,353.83 crore in two days. Infosys, India’s second-biggest software exporter, reported a 9.8 per cent rise in its consolidated net profit for the September quarter on Tuesday but trimmed its dollar sales growth forecast for the current fiscal.

The company also said its CFO Rajiv Bansal has resigned. Consolidated net profit in July-September rose to Rs. 3,398 crore compared with Rs. 3,096 crore in the year-ago period, the company had said in a statement. Revenue was up 17.2 per cent to Rs. 15,635 crore in the second quarter ending September 30 from Rs. 13,342 crore in the year-ago period.

For the full fiscal, Infosys said revenue in dollar terms is likely to grow 6.4 per cent to 8.4 per cent, lower than previous guidance of 7.2 to 9.2 per cent, as broad weakness in IT spending and a stronger dollar are making clients wary. While the company did not give reasons for the cut in growth forecast, the appreciation of the dollar against major currencies is said to be the main cause.

Infosys Technologies Limited