E-Paper
Infosys shares fall 3%, market cap erodes by ₹8,000 crore
Infosys shares fall 5.98% in intraday trade to Rs1,099 on the BSE, as investors were disappointed after the company lowered its operating margin outlook.
Infosys shares ended 3% lower on the bourses on Monday, resulting in the company’s market capitalisation eroding by nearly ₹8,000 crore.
The stock fell after the company reported less-than-expected margin guidance for fiscal year 2018-19.
During the day, the stock of the company fell to an intra-day low of ₹1,099, down 5.98% over its previous closing price. At the end of today’s trading session the stock was quoted at ₹1,132.80, down 3.10%.
On the NSE, the stock fell to an intra-day low of ₹1,102 and finally settled for the day at ₹1,134.50, down 3.15% over its last close.
Following the decline in the counter, the market capitalisation of the company declined by ₹7,887.28 crore to ₹2,47,416.46 crore. The stock was the second largest loser in the 30-share index.
Global brokerage Nomura in a research note said, “growth weakness in developed markets, BFSI and retail is a negative. We expect the stock to react negative to the margin guidance cut”.
The report further noted that “guidance for FY19 growth is in line with consensus, though a cut in EBI margin guidance to 22-24% (as against 23-25% earlier) was a disappointment”.
Infosys, on April 13, reported a consolidated net profit of ₹3,690 crore, or ₹16.98 per share, in January-March 2018 quarter as compared to ₹3,603 crore, or ₹15.77 a share in the same period a year back.
For 2018-19, Infosys expects its revenue to grow in the range of 6-8% in constant currency terms and 7-9% in the US dollar terms. For financial year 2018-19 Infosys expects operating margin range at 22% to 24%.
