In early trading, Infosys shares fell about 12% to 15% and reached their lowest point in more than two years. Here is everything you need to know.
According to India Today Business Desk: In the opening hours of trading on Monday, shares of Infosys, the country’s second-largest provider of IT services, fell precipitously by around 12% to 15%.
As a result, Infosys stock fell to its lowest point in more than two years. The IT bellwether company’s shares were 11.60% lower at 1,228.10 per share at 10 am.
The change occurs following Infosys’ release of weaker-than-anticipated results for the quarter ending March 2023.
On Thursday, Infosys released its Q4 financial results, announcing that its consolidated revenue for the quarter increased by 16% year over year to Rs 37,441 crore and that its net profit increased by over 8% to Rs 6,128 crore.
Unfortunately, the company’s topline and bottomline results fell short of analysts’ projections. Not only that. Additionally, the corporation predicted 4–7% financial growth this fiscal year, which is weaker than usual. In six years, this would be the slowest.
Similar to TCS, Infosys’ larger competitor, which also announced poorer-than-anticipated growth, TCS’s fourth quarter growth was weaker than projected. This is due to the fact that both businesses noticed a reduction in international demand as a result of the global downturn and worries about a potential US recession.
The stock’s future performance prognosis has caused several brokerages to become concerned, and the majority have lowered their target prices for the stock a day after Infosys released its Q4 results. This might have been the catalyst for today’s dramatic decline in the share price of Infosys.
All 10 of the Nifty IT index’s major components, including Infosys, experienced a severe decline, indicating that investors are now wary of the performance of IT businesses in the third and fourth quarters. Tech Mahindra also experienced a significant decline in early trade of over 7%, while TCS experienced a decline of around 3%.