Infosys lost 7.39% to Rs 3,399.50 at 9:39 IST on BSE, after the company reportedly warned of a tough start to the next financial year because of weak spending by top clients.
ADR of India's second-largest software exporter by sales Infosys had declined 6.1% to settle at $56.01 on Wednesday, 12 March 2014.
Meanwhile, the S&P BSE Sensex was up 23.91 points or 0.11% at 21,880.13
On BSE, so far 1.67 lakh shares were traded in the counter as against average daily volume of 72,600 shares in the past one quarter.
The Infosys stock saw high volatile in early trade. It lost as much as 9.01% at the day's low of Rs 3,340 so far during the day. It fell as much as 6.04% at the day's high of Rs 3,449 so far during the day. The stock had hit a 52-week low of Rs 2,190 on 29 April 2013. The stock hit a record high of Rs 3847.20 on 3 March 2014.
The stock had underperformed the market over the past one month till 12 January 2014, rising 1.98% compared with the Sensex's 6.88% rise. The scrip, however, outperformed the market in past one quarter, gaining 9.14% as against Sensex's 4.45% rise.
The large-cap company has equity capital of Rs 287.12 crore. Face value per share is Rs 5.
Infosys on Wednesday, 12 March 2014 reportedly warned of a tough start to the next financial year because of weak spending by top clients. The company now expects revenue for the year ending 31 March 2014 to come in at the lower end of its forecast. The company was facing a sluggish fourth quarter with some retail and consumer clients ramping down or cancelling projects, reports added.
Founder and executive chairman N.R. Narayana Murthy was quoted by media at an investors' conference on Wednesday, 12 March 2014 as indicating that a turnaround at Infosys might be a long-drawn-out affair, saying the company would need at least three to five years to get back to or exceed industry growth rates.
It may be recalled that Infosys had raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 at the time of announcement of Q3 December 2013 earnings in January 2014.
The company had forecast consolidated revenue in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014 (FY 2014). This guidance was based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company had forecast consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.
Infosys' consolidated net profit jumped 19.4% to Rs 2875 crore on 0.5% increase in revenue to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS). Operating profit rose 14% to Rs 3620 crore in Q3 December 2013 over Q2 September 2013 on back of expansion in operating profit margin (OPM) by a sharp 330 basis points QoQ at 27.8% in Q3 December 2013. The OPM expanded by 170 basis points QoQ, excluding one-off visa cost of Rs 219 crore in Q2 September 2013.
Infosys is a global leader in consulting, technology and outsourcing solutions.
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