New Delhi: Infosys, country's second-largest IT services firm, plunged 9 per cent to Rs 1,592.05 on the BSE in intra-day trade on Monday, the sharpest intra-day fall in two years.
According to stock market data, the company on March 23, 2020, had tanked 12 per cent in the intra-day trade on the BSE.
At 10:30 am, the stock of the IT firm was trading at 1,627, down 6.94 per cent on the BSE.
Infosys' market-cap declined to Rs 6,92,281 crore on the BSE, with its investors losing over Rs 40,000 crore in early deals, according to news reports.
Infosys on Wednesday reported a weak set of numbers for the quarter ended March 2022 (Q4FY22).
The Bengaluru-headquarted firm's consolidated net profit climbed to Rs 5,686 crore ($746.87 million) in the quarter ended March 31, 2022 from Rs 5,076 crore a year earlier. Revenue from operations rose to Rs 32,276 crore, a rise of 23 per cent against Rs 26,311 crore recorded during the corresponding period of last year.
However, the company’s earnings before interest and tax (Ebit) margin was down 190 basis points (bps) quarter-on-quarter (QoQ) to 21.6 per cent due to lesser days, lower utilisation, and higher visa costs. The company's revenue in US dollar terms grew 0.7 per cent QoQ to $4,280 million, and was up 1.2 per cent QoQ in constant currency (CC) terms.
Moreover, Infosys's margin guidance of 21-23 per cent for FY23 is 100bp lower from its earlier guidance in FY22. It has guided for a revenue growth of 13-15 per cent for FY23.
According to news reports, analysts said that scope for an upward revision in coming quarters as evident from past trends.
With its sharp 9 per cent intra-day fall, Infosys has plummeted below its 200-DMA (Daily Moving Average) for the first time since the minor blip on February 28, 2022.
Earlier the stock traded below its 200-DMA on a consistent basis way back in June 2020.
On Wednesday during the post-Q4 results call, Infosys CEO and MD Salil Parekh said, “Infosys delivered highest annual growth in a decade with broad-based performance driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities... We continue to gain market share as a result of sustained clients' confidence in our ability to successfully navigate their digital journeys.”
In last financial year, Infosys’s net profit was up 14.3 per cent to Rs 22,110 crore, while revenue was higher 21 per cent to Rs 1.21 lakh crore compared to the previous financial year.