Infosys stock tanks 10% post Q1 results
Infosys shares lost as much as 10% after the company reported a 13% jump in consolidated net profit of Rs 3,436 crore for the quarter ended June. Analysts had estimated the company would report net profit of about Rs 3,500 crore for the quarter.
On sequential basis analysts were expecting a 4% fall in profits for Infosys due to weak operational performance. The net profit fell more than that and hence the slide. In mid-session, Infosys was trading nearly 9% lower at Rs 1,071 on the BSE.
Usually IT companies show stronger growth in revenues in the first quarter but weaker net profit growth due to salary revision and visa costs. For the current quarter analysts expected leading IT companies to show a revenue growth of about 12-15% and net profit growth in high single digits.