India’s Infosys tumbles 15% on weak revenue outlook, drags sector

Infosys Ltd (INFY.NS) shares slumped nearly 15% on Monday, dragging peers and the benchmark index, after the company’s dismal revenue outlook raised concerns about demand for Indian IT services amid global banking turmoil and recession fears.

Infosys’ outlook last week followed a disappointing quarterly report from larger rival Tata Consultancy Services (TCS.NS), highlighting worries for the sector which earns more than 25% of its revenue from just the U.S. and European banking, financial, services and insurance sector.

The collapse of two mid-sized U.S. lenders in March had left the financial ecosystem shaken and driven an extraordinary government effort to reassure depositors and backstop the system.

“Some of the macro challenges especially around banking, financial services and insurance (BFSI) has become bigger and that does mean project cancellations or delays in the deal decision cycle,” said Apurva Prasad, vice president of institutional research, HDFC Securities.

Prasad said he was expecting a sequential decline for companies like HCLTech (HCLT.NS), Wipro (WIPR.NS) and Tech Mahindra (TEML.NS) on constant currency basis.

Infosys, India’s second-largest IT services firm, on Thursday, said it expects revenue growth of 4%-7% on a constant currency basis for the fiscal year ending March 2024, well below analysts’ expectations of 10.7% growth, as clients cancelled some projects and deferred spending on growing fears of a recession.

The previous slowest annual growth was a 5.8% increase in fiscal 2018.

Infosys fell as much as 14.7% to 1,185.3 rupees on Monday in its biggest intraday percentage drop since October 2019. The Nifty IT index (.NIFTYIT) dropped as much as 7.6%.

Bengaluru-based Infosys’ net profit of 61.28 billion rupees ($748.21 million) in the January-March quarter also missed analysts’ expectations of 66.24 billion rupees, according to Refinitiv IBES.

Smaller rival HCLTech (HCLT.NS) is due to report results later this week, while Wipro (WIPR.NS) is expected next week.

2 COMMENTS

  1. I know and can recommend a very efficient and trustworthy hacker. I got his email address on Quora , he is a very nice and he has helped me a couple of times even helped me recover stolen funds in my Coinbase account at a very affordable price. he offers a top notch service and I am really glad I contacted him. He’s the right person you need to talk to if you want to retrieve your stolen crypto currencies & bitcoin accounts, deleted/old texts, call logs ,emails ,photos and also hack any of your spouse’s social network account Facebook,
    twitter, Instagram, messenger chats, snapchat, reddit, telegram, tinder and WhatsApp, He offers a legit and wide range of hacking services. His charges are affordable and reliable, This is my way of showing appreciation for a job well done. contact him for help via address below..
    Email : Leonardomitnickhacking@gmail. com

  2. I invested all my life savings into an online crypto currency investment and could not withdraw my money back after earning so much. After loosing all i laboured and saved for my retirement ,
    I became miserable and could not continue my daily activities. I reported to the feds but there was nothing they could do because bitcoin is not traceable. Then i decided to hire an online private investigator who got a few information from the account and recovered every penny that was stolen from me.
    if you have lost your money to any scam and you need to recover it back ,
    i suggest you contact this private investigator > { recoverfunds.investigator247 @ gmail . com}

Comments are closed.

Must Read

SBP approves pilot operations for digital payment providers amidst rapid growth...

ISLAMABAD: The State Bank of Pakistan (SBP) has granted in-principle approvals to Toko Lab Private Limited and Accept Technologies Private Limited (operating as PayMob)...