Not surprisingly, Infosys is the top loser on the BSE since the opening bell today; opening 9% lower at Rs.1321, the stock price nose-dived to Rs.1311.60, falling 9.5%; it has recouped from the intraday low and is now trading at Rs.1339 levels.

The ADRs listed on the Nasdaq too fell sharply by 8.5%.

The market is pretty much shocked with the company’s sharp cut in its guidance given for Q1FY24.

Based on challenging macroeconomic environment, the company cut its revenue growth guidance for FY24 from 4-7% to 1-3.5%. A cut in the guidance was penciled in but most certainly not such a sharp one.

Following this, majority of the brokerage houses downgraded the stock for the immediate short term with a cautiously pessimistic outlook for the medium term.

What was also disappointing was the performance for Q1FY24 wherein its consolidated revenue came in at Rs.37,933 crore, up 1.3% (QoQ) and met profit was at Rs.5945 crore, down 3%.

EBIT came in at Rs.7891 crore, up less than 0.5% while margins slipped 23 bps to 20.80%. Despite this, the company retained its operating margin guidance at 20-22% for FY24.