Shares in Infosys Ltd fell 3% on Monday after the country’s second largest software services exporter unexpectedly lowered its revenue guidance. Infosys beat expectations with a better-than-expected second quarter results which rose 12%.
Bengaluru-based Infosys now expects revenue in the current financial year to grow in the 6.4-8.4% range, compared with 7.2-9.2% it had forecast earlier. The cut comes in the backdrop of volatility in the global currency market. In constant currency terms, revenue for the full year is expected to rise 10-12%.
The company also announced its chief financial officer Rajiv Bansal has announced his decision to step down. He will be replaced by MD Ranganath, effective end of business hours on Monday.
In the July-September quarter, Infosys reported a net profit of Rs 3,398 crore, compared with Rs 3,030 crore in April-June and Rs 3,096 crore in the year-ago second quarter. Analysts had expected the company to report a net profit of Rs 3,289 crore, according to a Reuters poll.
Revenue for the quarter was at Rs 15,635 crore, up 17% year-on-year and 9% sequentially.
In dollar terms, its second-quarter revenue rose 9% from a year ago, 6% quarter-on-quarter to $2.39 billion.
“We are experiencing a once-in-a-generation opportunity for a services company to help businesses maximize their potential with technology. From automation and AI (artificial intelligence) helping to simplify and enable existing landscapes as well as build intelligent systems that help us solve our most complex emerging problems, to education and design helping us to rethink the human experience and helping uncover our most important horizons, a great services organization can truly partner with and amplify businesses. At Infosys, we are taking steps towards becoming such a services organization, and I am encouraged by our progress,” said Vishal Sikka, CEO and MD.
At 10:15am, Infosys shares were down 2.4% at Rs 1,140 on the BSE. The broader Sensex was up 48 points or 0.2% at Rs 27,127.22.