- By Vaamanaa Sethi
- Fri, 21 Jul 2023 10:55 AM (IST)
- Source:JND
Shares of tech major Infosys plummeted by 10% in the early trade on Friday, July 21 as the company reported a sharp decline in its revenue guidance to 1-3% against 4-7% earlier. The firm cited challenging macroeconomic challenges as the key driving factor behind the cut in guidance.
Also, the net profit of the company for the April-June quarter also reportedly missed the industry’s expectation. A similar sentiment was also seen in ADR American Depository Receipts) of Infosys on NASDAQ on July 20 at 8.4%.
The shares of Infosys were down by 7.89%, trading at Rs 1,335.20 per share at 10:43 am IST.
Moreover, the company's topline for April-June quarter at Rs 5,945 crore was below market estimates of Rs 6,193.5 crore. “We had a solid Q1 with a growth of 4.2% and large deals of $2.3 billion, which helps us to set a strong foundation for future growth,” said Salil Parekh, CEO and MD.
He further added, “We have expanded the margin improvement program with a holistic set of actions for the short, medium and long-term, working on five key areas, supported by our leadership team.”
Brokerage firms like Macquarie and Nomura downgraded Infosys, while others forecasted caution. Macquarie has downgraded the stock to ‘underperform’ as it was disappointed by tech major’s performance in the quarter, as cited by Moneycontrol.
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Nomura, on the other hand, downgraded Infosys stocks to 'reduce' along with a cut of nearly 1% in its target price for the stock to Rs 1,210. Other brokerage firms like Jefferies, Motilal Oswal, Bank of America Securities have also lowered their FY24/FY25 EPS estimates for the IT major by 2-6 percent.