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Infosys net profit down 2.6 percent in Q1 2010
Tuesday, 13 July 2010, 18:02 IST |
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Mumbai: Infosys Technologies lagged market estimates with a surprise 2.6 percent drop in Q1 net profit. Shares of the company, which carries maximum weight on Sensex after RIL, fell to 
2,820.25, down 2.6 percent on the BSE.
The IT bellwether reported a fall of 2.4 per cent in its June quarter net profit. The company's consolidated net profit declined to 1,488 crore against 1,525 crore in the same quarter last year.
However, the consolidated revenue rose to 6,198 crore against 5,472 crore over the year-ago period. The results are marginally down which was expected due to pressure on company's revenues in terms of squeezed margins.
The company forecast its 2010/11 dollar revenue to rise 19 percent to 21 percent, higher than 16-18 percent projected in April.
The company expects earnings per American depositary share to rise 5.2 percent to 9.6 percent for the year, up from its previous forecast of 4.3 percent to 8.6 percent. Infosys shares, valued at about $36 billion, traded down 2.1 percent at Rs 2,835 after the results announcement.
"The stock had already seen a huge run-up in the past few trading sessions, so now it may see some erosion as the markets were expecting better results but stock will remain strong in the long run," BNP Paribas Financial Services Assistant Vice-President Gaurang Shah said. Witnessing a similar fall on National Stock Exchange, shares of the company declined 2.62 percent to hit a low of 2,820.
Reacting to Infosys results, the broader gauge Sensex fell by 0.15 percent to 17,910.80 in the early trade. The Infosys stock dragged the entire BSE-IT index down by 2.22 percent to 5,423.52.
Source: PTI
2,820.25, down 2.6 percent on the BSE.
The IT bellwether reported a fall of 2.4 per cent in its June quarter net profit. The company's consolidated net profit declined to 1,488 crore against 1,525 crore in the same quarter last year.
However, the consolidated revenue rose to 6,198 crore against 5,472 crore over the year-ago period. The results are marginally down which was expected due to pressure on company's revenues in terms of squeezed margins.
The company forecast its 2010/11 dollar revenue to rise 19 percent to 21 percent, higher than 16-18 percent projected in April.
The company expects earnings per American depositary share to rise 5.2 percent to 9.6 percent for the year, up from its previous forecast of 4.3 percent to 8.6 percent. Infosys shares, valued at about $36 billion, traded down 2.1 percent at Rs 2,835 after the results announcement.
"The stock had already seen a huge run-up in the past few trading sessions, so now it may see some erosion as the markets were expecting better results but stock will remain strong in the long run," BNP Paribas Financial Services Assistant Vice-President Gaurang Shah said. Witnessing a similar fall on National Stock Exchange, shares of the company declined 2.62 percent to hit a low of 2,820.
Reacting to Infosys results, the broader gauge Sensex fell by 0.15 percent to 17,910.80 in the early trade. The Infosys stock dragged the entire BSE-IT index down by 2.22 percent to 5,423.52.
Source: PTI