IT major Infosys shares fall over 3% after Q4 earnings
Shares of IT major Infosys on Tuesday declined over 3 per cent after the company refrained from providing a revenue outlook for FY21, citing uncertainty amid COVID-19 outbreak that is expected to impact its business in the near-term.
The scrip closed the day 3.04 per cent lower at Rs 633.05 on the BSE after falling 3.85 per cent to Rs 627.70 during the day.
On the NSE, it dropped 3.10 per cent to close at Rs 633.
In traded volume terms, 2.66 lakh shares of the company were traded on the BSE and over one crore shares on the NSE during the day.
After market hours on Monday, Infosys reported a 6.3 per cent rise in consolidated net profit for March quarter, but refrained from providing a revenue outlook for FY21, citing uncertainty amid COVID-19 outbreak.
The country's second-largest IT services company - which saw revenue growing 8 per cent to Rs 23,267 crore in the March quarter - anticipates a continued slowdown in the near-term influenced by a broad-based global economic recession.
"Our sense is that in the near-term we will see an impact on our business. We do not have a clear view of when the recovery will come back," Infosys CEO and MD Salil Parekh told reporters.
Parekh's views are similar to the sentiments echoed by peers like Wipro and Tata Consultancy Services -- both had cited future business uncertainty while announcing their quarterly earnings last week.
Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas, said Infosys reported below-than-expected revenue and earnings before interest and taxes (EBIT) margin performance.
Other IT companies also faced selling, with Tata Consultancy Services falling 4.48 per cent, HCL Technologies 3.23 per cent, Tech Mahindra 2.63 per cent and Wipro 1.74 per cent on the BSE.
