Biggest fall of Infosys stocks in two years

By siliconindia   |   Saturday, 16 April 2011, 00:27 IST   |    2 Comments
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Biggest fall of Infosys stocks in two years
Bangalore: IT bellwether infosys reported nearly 14 percent in consolidated net profit at Rs 1,818 crore for the fourth quarter ended March 31, 2011, which is less than the market expectations. Also, the board has declared a final dividend of Rs 20 per share for the fiscal on every share of Rs 5 held. The country's second largest software major had a net profit of Rs 1,600 crore in the March quarter of the previous fiscal (2009-10), Infosys Technologies said in a filing to the Bombay Stock Exchange. However, analysts said the market was expecting 3.3-6.7 per cent growth in Infosys' consolidated net profit between Rs 1,839.40 crore- Rs 1,899.20 crore in the quarter ended March 31. The company while announcing its third quarter results earlier had given Q4 revenue guidance in the range of Rs 7,157- Rs 7,230 crore, and anticipated revenue for the full year ending March 31, 2011, in the range of Rs 27,408-Rs 27,481 crore. Reacting to the results announcement, the company shares were trading at Rs 3,062, down 7.38 percent over the previous close on BSE. Infosys co-founder K Dinesh and board director TV Mohandas Pai has resigned from the IT bellwether in pursuit of their future endeavours, the company said today. Pai has also decided to relinquish the position of member of the board and has requested the board to relieve him of the responsibilities after the Annual general Meeting (AGM). Pai said that it was important for young leaders to take over and was contemplating to quit for a long time. Infosys' board of directors will meet on April 30 to finalise plans for the company's leadership as chairman NR Narayan Murthy retires in August 2011. Infosys shares closed down 9.59 percent on BSE at Rs 2988.80. Shares fell after the Indian outsourcing firm reported lower-than-expected fourth quarter net profit, and dragged the broader market down. Indian IT major Infosys on Friday said it will recruit 45,000 people in 2012. During the quarter, Infosys and its subsidiaries added 8,930 employees (gross). The net addition during the quarter was 3,041. Till date, Infosys has workforce of 1, 30,820 people. TV Mohandas Pai, whose resignation was announced by the company , has asked the company to be relieved of all the responsibilities after the company annual meeting on June 11.

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