New Delhi: Share price of IT giant Infosys fell as much as 6 percent minutes after markets opened. The slump which came during the early trade on Monday morning caused a loss in market capitilisation of approximately Rs 15,000 crore.
Shares fell to Rs 1,099 as compared to its Friday's close of Rs 1,169 on BSE. This comes after Infosys announced its fourth quarter results on Friday. Analysts said that though Infosys Q4 numbers were in line with expectations, the IT major's guidance for FY19 growth and operating margin were below estimates.
For the ongoing financial year, Infosys approximated revenue growth of 6-8 percent.
On operating margin front, Infosys guidance for FY19 also disappointed analysts. Infosys expects operating margin at 22-24 percent range in FY19. In FY18 Infosys revenues grew 5.8 percent in constant currency terms, with operating margins at 24.3 percent.
"Infosys cut its FY19 EBIT margin guidance to 22-24 per cent v/s the FY18 band of 23-25 per cent. This will largely factor in investments in localized talent, revitalizing sales, Digital capabilities and delivery staff. The 1% revision amounts to $120m, and considering that these are investments in people, which will only come gradually, we see the lower end of the margin band as conservative, and expect it to be raised during the course of the year," said domestic brokerage Motilal Oswal in a note.
Net profit for the firm rose Rs 3,690 crore in the three months ended March 31, compared with Rs 3,603 crore a year ago.
According to Reuters, 18 analysts had on average expected net profit of Rs 3,709 crore.
Software major Infosys has announced of holding a meeting with market analysts in Mumbai on April 23 to brief about its business operations.
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