Infosys has tanked 10% at Rs 2,463 in opening trades on reporting 4.8% quarter-on-quarter (Q-o-Q) drop in its consolidated revenues at Rs 8,852 crore for the fourth quarter ended March 31, 2012 (Q4). Analyst expected revenues of Rs 9,124 crore from the India’s second largest software services exporter.
Earnings before interest and tax (EBIT) too dropped 8.7% Q-o-Q to Rs 2,647 crore, while EBIT margin dropped at 29.9% in the fourth quarter of FY12 as against 31.17% in the previous quarter.
However, the IT firm has reported slightly better than expected net profit of Rs 2,316 crore for the Q4 of FY12, a fall of 2.3% QoQ. Analyst expected it at Rs 2,294 crore.
“The year ahead looks challenging for the IT services industry, with slow recovery in the global markets,” said S. D. Shibulal, CEO and Managing Director.
Meanwhile, Infosys has guided for 8-10% growth in dollar revenue terms which is much lower than expectations of 12-15%. The company expects FY13 dollar revenues at $7553-7692 million. The FY13 EPS guidance is expected at Rs 158.76-161.4 (at assumed currency rate of INR50.88/$).
The board of directors of the company has recommended a final dividend of Rs 22/- per share and a special dividend (10 years of Infosys BPO Operations) of Rs 10 per share.