Infosys falls as Murthy unhappy

Infosys is currently the top loser of the day, down 8% at Rs.3390, with an intra day low at Rs.3340.

The stock is down  after Narayana Murthy, at an investor concall with Barclays, said that he was not happy with the way in which Infosys has performed. He voiced concerns over its growth guidance as the company has not been able to deftly take any advantage of the rupee fall which in way helped the company improve its operating margins. He stated that rupee depreciation should have ideally increased its margins to 41.5% but it fell 45% while revenue fell 22% over the last two years.

He has said that he expects 11.5 to 12% revenue growth as against Nasscom’s industry growth rate of 13%. He also remarked that during FY12 and FY14, Infosys grew around 5.8% while the entire Indian software sector grew 11%.

Overall, he presented a very dismal but honest picture and the market is not taking this truth too well.