Mumbai, Oct 12 (PTI) Shares of software services major Infosys today erased all its early gains, falling by 5 per cent, after the company cut its dollar revenue guidance for the fiscal.
The stock plunged 5 per cent to Rs 1,108.90 on BSE after earlier rising by 4.37 per cent to Rs 1,219 -- its 52-week high.
The stock was the top loser among the 30-Sensex components.
On the NSE, shares of the company dipped 5 per cent to Rs 1,109.
"Infosys Q2 results are quite impressive. Slashing the full year dollar revenue guidance is reflection of management's realistic market expectation. The current dip in the stock price is perhaps an over reaction to the cut in revenue guidance and profit-booking to a certain extent," said Nithin Kamath, Founder & CEO - Zerodha.
Country's second largest software services firm Infosys today posted 9.8 per cent increase in consolidated net profit to Rs 3,398 crore for the quarter ended September 30, 2015.
The firm had reported a net profit of Rs 3,096 crore in the year-ago period.
Consolidated revenue was up 17.2 per cent to Rs 15,635 crore in the said quarter from Rs 13,342 crore in the year-ago period, the company said in a filing to the BSE.
Infosys had reported a net profit of Rs 3,030 crore and revenues of Rs 14,354 crore for the April-June quarter of this financial year.
The company also announced that its Executive Vice President and CFO Rajiv Bansal has resigned. He will be replaced by M D Ranganath at the close of business today.
Ranganath has held several leadership positions during a tenure of nearly 15 years with Infosys.
For 2015-16, the company gave a revenue guidance of 13.1 per cent to 15.1 per cent in rupee terms. In dollar terms, the company forecast growth of 6.4 per cent to 8.4 per cent from a previous forecast of 7.2 per cent to 9.2 per cent.
Shares of other IT companies were also down. TCS was quoting 0.75 per cent down, Wipro too lost 0.59 per cent and HCL Tech slipped 0.39 per cent on BSE.
In the broader market the Sensex was trading down at 27,036.83, down 42.68 points at 1155 hrs.
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. canaranews.com will not be responsible for any defamatory message posted under this article.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on CANARANEWS to provide the IP address and other details of senders of such comments, to the authority concerned upon request.
Hence, sending offensive comments using canaranews will be purely at your own risk, and in no way will canaranews.com be held responsible.