Infosys slumps on poor Q1 show

Infosys is the top loser on the BSE as the market is very disappointed with the company’s performance for Q1FY17. It net profit for the quarter declined 4.5% (QoQ) at Rs.3436 crore on flattish, 1.4% rise in revenue at Rs.16,782 crore. The growth in dollar revenue was also disappointing, up just 2% at $2501 million.  The company missed out on all revenue and profit targets and the perception is that this was not the best way to begin the fiscal.

EBIT during the quarter fell 4% to Rs.4047 crore and margins fell by a sharp 138 bps to 24.12%.

More disappointing was the lowering of its guidance – it lowered its constant currency revenue growth guidance to 10.5 to 12%, down from 11.5% to 13.5%. The poor show is especially more disappointing as rival TCS yesterday evening posted a performance which was much above all analyst expectations.

The stock is down 9.5% currently at Rs.1064 with an intra day low of Rs.1058.30.