Nine IT shares fell by 1.26% to 17.17% at 10:20 IST on BSE after IT major Infosys discontinued issuing full year earnings guidance after reporting Q4 and year ended 31 March 2013 results before trading hours today, 12 April 2013.
Infosys (down 17.17%), TCS (down 3.01%), Wipro (down 4.8%), HCL Technologies (down 2.17%), Polaris Financial Technology (down 2.73%), Tech Mahindra (down 2.47%), Oracle Financial Services Software (down 1.61%), MphasiS (down 1.26%) and Mahindra Satyam (down 2.44%) edged lower.
The BSE IT index was down 9.42% at 6,154.27 and was the top loser among the 13 sectoral indices on the BSE. It underperformed the Sensex, which was down 1.39% at 18285.38.
The BSE IT index had outperformed the market over the past one month till 11 April 2013, falling 2.44% compared with the Sensex's 5.62% fall. The index had also outperformed the market in past one quarter, advancing 8.67% as against Sensex's 5.7% fall.
IT major Tata Consultancy Services (TCS) announces its Q4 March 2013 results on 17 April 2013. Wipro announces Q4 March 2013 results on 19 April 2013.
Infosys before market hours today, 12 April 2013 reported 1.1% rise in consolidated net profit as per International Financial Reporting Standards (IFRS) to Rs 2394 crore on 0.3% growth in revenues to Rs 10454 crore in the Q4 March 2013 over Q3 December 2012.
Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 13.3% to Rs 9421 crore on 19.6% rise in revenues to Rs 40352 crore in the year ended March 2013 over the year ended March 2012.
Infosys did not issue full year earnings guidance after reporting Q4 and year ended 31 March 2013 results. The company has forecast 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014). Infosys' guidance is lower than industry body Nasscom's guidance of 12-14% for IT exports.
Commenting on the financial performance, S. D. Shibulal, CEO and Managing Director, Infosys said, "Global economic uncertainties remain challenging for the IT industry. We are progressing well on our strategic direction of building a high-quality company which is relevant to our clients. We are making all the investments necessary to differentiate ourselves in the market place while positioning ourselves as a partner of choice for our clients."
Rajiv Bansal, Chief Financial Officer, Infosys said, "The global currency market continues to be volatile reflecting the uncertain economic environment. Our hedging strategy helps us to minimize the volatility impact. We have a healthy balance sheet with our cash and cash equivalents at $4.4 billion."
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