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Weakness persists in IT counters

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Capital Market
Last Updated : Apr 18 2013 | 5:56 PM IST

TCS (down 2.96%), Mahindra Satyam (down 0.84%), Tech Mahindra (down 0.69%), Hexaware Technologies (down 0.49%), Wipro (down 0.17%), HCL Technologies (down 0.05%) and Oracle Financial Services Software (down 0.24%), edged lower.

Infosys extended Friday's slump triggered after the company issued tepid revenue guidance at the time of announcing Q4 March 2013 and the year ended 31 March 2013 results. The stock was down 2.16% at Rs 2,245.85. The scrip had tumbled 21.33% on Friday, 12 April 2013. Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 1.1% to Rs 2394 crore on 0.3% growth in revenue to Rs 10454 crore in Q4 March 2013 over Q3 December 2012. Net profit rose 13.3% to Rs 9421 crore on 19.6% growth in revenue to Rs 40352 crore in the year ended March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company announced the results before market hours on Friday, 12 April 2013.

The company has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012.

The BSE IT index was down 1.96% at 5,922.24. It underperformed the Sensex, which was down 0.13% at 18,265.62.

The BSE IT index slumped 11.09% to 6040.48 on Friday, 12 April 2013. The BSE IT index had underperformed the market over the past one month till 12 April 2013, sliding 12.70% compared with the Sensex's 6.76% fall. The index had, however, outperformed the market in past one quarter, falling 3.39% as against Sensex's 7.23% fall.

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First Published: Apr 15 2013 | 11:22 AM IST

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