Infosys shares tumble 10% after cut in full-year revenue guidance; mcap falls by ₹43,776 crore

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Shares of Infosys tanked nearly 10% on Friday morning after the company reported a lower-than-expected 11% rise in net profit for the June quarter and slashed its FY24 growth outlook.

The stock tumbled 9.47% to ₹1,311.60 on the BSE.

At the NSE, shares of the company cracked 9.96% to ₹1,305 apiece. The company’s market capitalisation (mcap) fell by ₹43,776.29 crore to ₹5,57,287.83 crore in morning trade.

It was the biggest laggard among both Sensex and Nifty firms.

The 30-share BSE Sensex quoted 633.76 points or 0.94% lower at 66,938.14, while the NSE Nifty traded with a decline of 168.90 points or 0.85%t at 19,810.25.

Infosys on Thursday reported a lower-than-expected 11% rise in net profit for the June quarter and delivered a shocker as it slashed its FY24 growth outlook to 1-3.5%t on delayed decision-making by clients amid global macro uncertainties.

The net profit came in at ₹5,945 crore for the quarter ended June 2023, compared to ₹5,362 crore in the year-ago period. The company posted revenue growth of 10₹to ₹37,933 crore during the just-ended quarter.

The country’s second-largest IT services company – which competes with the likes of TCS, Wipro and others — drastically lowered its revenue guidance for the full year to 1-3.5% in constant currency, down from 4-7% it had projected earlier.

Seen sequentially, its net profit declined 3 per cent over the March quarter, while the revenue rose 1.31%.

Shares of other IT firms — TCS, HCL Tech, Wipro and Tech Mahindra — were also trading lower during the morning trade.

Last week, TCS, HCL Tech, Wipro and LTIMindtree announced their first-quarter results.