Shares of IT major Infosys fell nearly 5% on April 15 after the company’s March 2019 quarter earnings failed to cheer investors. The scrip made a weak opening and dropped 4.56% to ₹713.70 as the trade progressed on the BSE.
At the NSE, shares declined 4.70% to ₹712.60. The scrip was the major drag on both the key indices in early trade. IT major Infosys on April 12 posted a 10.5% rise in consolidated net profit at ₹4,078 crore for the March 2019 quarter, and guided towards 7.5% to 9.5% growth in revenue for FY2019-20. Infosys saw its revenues increase 19.1% to ₹21,539 crore in the March 2019 quarter from ₹18,083 crore in the year-ago period. The country’s second-largest software services firm said it expects its topline to grow 7.5% – 9.5% in FY 2019-20 in constant currency terms.
Infosys expects its operating margin in FY20 to be in the range of 21%-23%. Margins for FY19 stood at 22.8%. Sanjeev Hota, AVP Research at Sharekhan by BNP Paribas, said Infosys has delivered mixed set of earning performance but its revenue guidance is a tad “conservative”.
“Deal wins remain strong and management has guided for 7.5%-9.5% revenues growth for FY20E (estimate), which we believe is bit conservative. “Nevertheless, company delivered strong growth on digital revenues front. On the flip side, management has lowered the margins guidance to 21% – 23%, which was below our expectations and also attrition inched up during the quarter,” he said.