Infosys Shares Slip Nearly 15 Per Cent, Over Rs 73 Thousand Crores Wiped From Market Valuation Post Q4 Disappointments: Report

Last week on Thursday, Infosys logged a 7.8 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,128 crore in the March quarter of FY23.

The company missed revenue guidance for FY23 hit by “unplanned project ramp downs and decision-making delays by some clients.”

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The stock market crash on Monday wiped out Rs 73,060.65 crore from Infosys' market valuation as its shares plunged over 15 per cent. According to a PTI report, the company's market valuation declined by Rs 73,060.65 crore to Rs 5,08,219.35 crore. Last week on Thursday, Infosys logged a 7.8 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,128 crore in the March quarter of FY23. IT major also gave a 4-7 per cent revenue growth forecast for FY24 amid macroeconomic uncertainties. This has led to disappointment in the investors. 

According to the news agency report, Infosys declined 12.21 per cent to Rs 1,219, at its 52-week low mark on the BSE. On the other hand at the NSE, shares fell 14.67 per cent to their 52-week low of Rs 1,185.30. Infosys was the biggest drag on both the benchmark indices Sensex and Nifty.

The 30-share BSE Sensex quoted 891.04 points or 1.47 per cent lower at 59,539.96 in morning trade. Other IT firms also faced heavy declines, with Tech Mahindra, HCL Technologies, Tata Consultancy Services, and Wipro falling between 3 to 6 per cent.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "The worse-than-expected Q4 results from Infosys with only 4-7 per cent revenue growth for FY24 will drag down IT stocks impacting the Nifty."

The report noted that Infosys’ latest report card was a disappointment on several fronts – the company missed revenue guidance for FY23 hit by “unplanned project ramp downs and decision-making delays by some clients.”

The Bengaluru-based firm, which competes in the market with Tata Consultancy Services (TCS), Wipro, and other IT companies, also logged a 16 per cent YoY growth in consolidated revenue in the fourth quarter of FY23 at Rs 37,441 crore. Infosys has given revenue growth guidance of 4-7 per cent for FY24. The company, during the Q3 earnings announcement in January this year, had raised FY23 revenue guidance to 16-16.5 per cent against the previously projected band of 15-16 per cent.

For the full year FY23, the net profit was up 9 per cent on the year at Rs 24,095 crore, while revenue was 20.7 per cent higher at Rs 146,767 crore. 

"Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programs with our clients leveraging generative AI platforms," Infosys CEO and MD Salil Parekh said.