Infosys plunges 9% in March Quarter Earnings

On Monday, one of the leading IT firms in India Infosys announced its quarterly earnings. The quarterly result disappointed investors as the stock of the company plunged nearly 9% on below average Jan-Mar quarter earnings. Infosys stock was significantly affected by the Stable deal wins and lower than the expected profit margin of the company due to cost pressures led by higher employee costs and rise in travel costs. IT firm’s ADR stock, which is listed on the United States stock market plunged 14% in the previous 5 sessions because of weak earnings at a time when Indian bourses were closed due to holidays.

Analysts at Jefferies said, “Infosys' 4Q (March quarter) results missed estimates mainly due to muted growth of 1.2% on quarter constant currency. However, its 13-15% revenue growth guidance for FY23 and all-time high net additions reflect a strong demand outlook.” Infosys' result was disappointing even after considering the seasonal weakness in the Jan-Mar quarter. Stating the same a report by Jefferies said that “Infosys' growth in 4Q disappointed even considering the seasonal weakness. Muted growth in its top-2 verticals (BFSI and Retail) and top markets (North America and Europe) and a sharp decline in Life Sciences vertical possibly due to one-off contractual issues resulted in the subdued growth performance.”