Infosys falls on profit-taking, earnings details

Reuters Market Eye - Shares in Infosys fall more than 3 percent as investors booked profits after recent gains while some analysts cited disappointment with some of the details behind its April-June earnings unveiled on Friday, even as overall the IT outsourcing beat estimates.

Investors booked profits after the stock had surged 10.8 percent in June and 2.2 percent so far this month as of Friday.

"Infosys' results were ok but market is looking to test the sustenance of these numbers and the new CEO," said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance.

Infosys April-June operating profits were boosted in part by some one-offs such as a quarter-on-quarter reduction in so-called "unallocable expenses" to 2.3 bln rupees from 3.62 billion rupees and a reduction in depreciation going down to 2.3 bln from 3.6 bln, according to some analysts.

 

Analysts also cite disappointment that volume growth declined to 2.9 percent in the April-June quarter from 4.1 percent in the same quarter last year.

The shares are down 3 percent at 3226.70 rupees as of 3:21 p.m. after touching a low of 3185.80 earlier in the session.

(Reporting by Abhishek Vishnoi)