Infosys share price dipped by 6 per cent at Rs1099 in the morning, after Dalal Street got disappointed by company’s margin guidance for fiscal year 2018-19. Currently at 11:35 am, the the company’s stock is down by 4 per cent at Rs 1128. The consolidated net profit of the company dipped by 28.1 per cent to Rs 3690 crore while revenues increased by 1.6 per cent to Rs 18,083 crore in the last quarter of financial year 2018 compared with the previous quarter.
On Friday, post market hours, the company reported its March quarter results. The stock has fallen, as the Bengaluru-based company lowered its EBIT (Earnings before interest and tax) margin guidance for FY19 to 22-24 per cent from 23-25 per cent in the previous financial year.
Infosys consolidated net profit fell by 28.1 per cent to Rs 3690 crore in Q4 March 2018 over Q3 December 2017. On the other hand it witnessed 1.6 per cent increase in revenues to Rs 18,083 crore during the same period. On a consolidated basis, revenues are expected to grow 6 per cent to 8 per cent in constant currency in FY19. In rupee terms it expects revenues to grow 8.2 per cent-10.2 per cent in FY19.
Salil Parekh joined as Infosys CEO in January this year. He has been tasked with restoring growth at the country’s second largest IT services firm. During his stint, between January and March, Infosys revenues has grown by 5.6 per cent to Rs 18,083 crore compared with Rs 17,120 crore in the corresponding period last year. Net profit was up 11.7 per cent at Rs 16,029 crore. Revenues also grew 3 per cent to Rs 70,522 crore in FY2017-18 over the previous year.
“I am pleased with our healthy revenue growth, profitability, and cash generation in Q4. Our robust performance is a reflection of the strong impact we have with our clients and the dedication of our employees,” Parekh said.
For 2018-19, Infosys expects its revenue to grow in the range of 6-8 per cent in constant currency terms and 7-9 per cent in the US dollar terms.
With inputs from PTI