Shares of IT bellwether Infosys tumbled by about 11% in early trade today following weak revenue guidance by the company for the current fiscal, 2012-13, disappointing investors.
The scrip, which carries the maximum weight on the BSE 30-share Sensex, opened the day on a poor note
and fell further by 10.86% to an early low of Rs.
2,451.25 on the BSE.
However, at 1025 hrs, the stock was trading at Rs. 2,499, down 9.13% on the BSE
On the NSE, the stock had shed 10.93% to Rs. 2,450 after the results.
Infosys has 9.23 % weight in the 30-share Sensex pack, followed by RIL, which has 9.21% weight.
Analysts said that the biggest disappointment was the revenue guidance for the next year, which is taken as a benchmark for the IT industry as a whole.
"The future dollar revenue guidance was muted and was even below the standard industry projection. This has led to selling pressure in the stock," Ashika Brokers research head Paras Bothra said.
Infosys reported 27.4% jump in consolidated net profit at Rs. 2,316 crore for the fourth quarter ended March 31, 2012.
This is against a net profit of Rs. 1,818 crore in the March quarter of the previous fiscal (2010-11), Infosys said in a filing to the BSE.
However, on a quarter-on-quarter basis, the net profit was lower by 2.4%.
Infosys has warned of challenging times ahead.
"We had a very difficult quarter with revenues declining sequentially... The global currency market volatility continues to be a challenge for the industry." Infosys chief financial officer and member of board V Balakrishnan said.
The company expects revenue in the range of Rs. 9,011 crore - Rs. 9,100 crore for the quarter ending June 30, 2012, and in the range of Rs. 38,431 crore-Rs 39,136 crore for the FY'13.
Other leading IT stocks also came under pressure, with TCS trading lower by 3.62 % and Wipro was down 2.89%.
Led by massive sell-off in leading stocks, the BSE IT index was down 6.24 % at 5,553.27 at 0950 hrs and was the biggest loser among the 13 sectoral indices.
© Copyright © 2013 HT Media Limited. All Rights Reserved.