Shares of Infosys suffered big blow after it disappointed the street with its Q2 results. It fell 5 percent, touching 52-week low of Rs 996.15 per share intraday on Friday. What irked most investors was lowering of Infosys’ FY17 guidance.
The country’s second largest IT company slashed its revenue guidance for FY17 to 8-9 percent from 10.5-12 percent earlier in constant currency terms after considering performance of H2FY17 and near-term uncertain business outlook. This is second consecutive times when Infosys has slashed its guidance.
In contrast, TCS fared well on the bourses today. TCS gained 2 percent despite posting disappointing July-September quarter. Even though the IT major expects Q3 and Q4 to be better than usual and aims to maintain margins within guided band of 26-28 percent, analysts say that macro uncertainty persists, while impact of Brexit and US elections are unknown.
Overall, Infosys Q2 was better than its rival. IT solutions provider Infosys ‘ profit beat analysts’ expectations, rising 4.9 percent to Rs 3,606 crore in July-September quarter but reduced full year revenue guidance considerably due to uncertain external environment. Rupee revenue rose 3.14 percent to Rs 17,310 crore and dollar revenue was up 3.4 percent at USD 2,587 million on sequential basis, which were slightly ahead of estimates.
Tata Consultancy Services ended at Rs 2,365.90, up Rs 37.40, or 1.61 percent while Infosys was at Rs 1,027.40, down Rs 24.65, or 2.34 percent on the BSE.
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