Infosys is trading lower by 3% to Rs 3,168, extending its 3% decline, from Tuesday’s high on investors' concerns about the company’s ability to bag lucrative contracts due to high attrition rate in the January-March quarter even as it posted a higher-than-expected net profit for the period.
The stock opened at Rs 3,257 and touched a low of Rs 3,160 on the NSE. A combined 584,595 shares changed hands on the counter so far on the NSE and BSE.
The attrition rate, currently bigger than its two rivals — Tata Consultancy Services and third-ranked Wipro — is the highest ever seen and “more than we are comfortable with”, the Reuters report suggests, quoting chief executive SD Shibulal.
Around 18.7% of overall staff left the company in the March quarter, the company said, up from 16.3% in the same year-ago quarter and in line with the level of staff exits in the previous quarter, the report added.
The stock rose 4% in early trade on Tuesday and touched a high of Rs 3,372, but ended the day with a gain of only 0.76% at Rs 3,260 on the BSE. The absence of any negative surprises in the result had boosted sentiment, but a weak commentary after announcement of the result snatched away most of the stock's gains.
The stock opened at Rs 3,257 and touched a low of Rs 3,160 on the NSE. A combined 584,595 shares changed hands on the counter so far on the NSE and BSE.
The attrition rate, currently bigger than its two rivals — Tata Consultancy Services and third-ranked Wipro — is the highest ever seen and “more than we are comfortable with”, the Reuters report suggests, quoting chief executive SD Shibulal.
Around 18.7% of overall staff left the company in the March quarter, the company said, up from 16.3% in the same year-ago quarter and in line with the level of staff exits in the previous quarter, the report added.
The stock rose 4% in early trade on Tuesday and touched a high of Rs 3,372, but ended the day with a gain of only 0.76% at Rs 3,260 on the BSE. The absence of any negative surprises in the result had boosted sentiment, but a weak commentary after announcement of the result snatched away most of the stock's gains.
Meanwhile, most analysts have maintained their ‘Buy’ rating on the stock post March quarter earnings.
“Given the soft growth outlook of Infosys and investors’ modest expectations for FY2015, the room for positive surprises has improved considerably. Thus, we maintain our positive stance on Infosys and retain our Buy rating with a price target of Rs 3,900” said an analyst at Sharekhan in a note.
An analyst at Angel Broking said, "With the current set of results as well as guidance being largely in line with expectations, we don’t foresee a very sharp upside potential for the script in the immediate future. We maintain our Accumulate rating on the stock with a target price of Rs 3,640".