Infosys hits a high and slumps

Infosys is a pretty big loser in today’s early morning trades. Going back to the tradition of being the first to announce quarterly results in IT and that too first thing in the morning, the market though does not seem to be too impressed.  The reason could be the cut in its guidance despite numbers exceeding most expectations.

The company lowered its FY16 dollar revenue guidance from 7.2% -9.2% to 6.4-8.4%. It has though maintained its guidance at constant currency at 10-12%. The market is also perturbed by the fact that its CFO, Rajiv Bansal stepped down, effective today. This “stepping down” which one has seen so much in the past, continues to haunt the company.

On the financial numbers front, its net profit for the quarter rose 12% (QoQ) at Rs.3398 crore – the highest in 16 quarters! On the revenue growth front, rupee revenue rose 9% at Rs.15,635 crore while dollar revenue at US$2392 million was up 6%.

The stock price is on a roller coaster ride with the scrip initially, enthused by the profitability, hitting a new 52-week high at Rs.1219 but soon guidance factor took over and it is now down over 2% at Rs.1143.