Infosys suffers 10 percent tumble on disappointing earnings

By IANS,

Mumbai : Share price of Infosys Technologies, India’s second largest software exporter, plunged almost 10 percent Friday, the sharpest fall in almost two years, after the company’s fourth quarter earnings missed market expectations.


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Infosys shares fell after the announcement of the fourth quarter earnings and closed 9.59 percent down at Rs.2,988.80 on the Bombay Stock Exchange (BSE).

The IT bellwether’s share slumped to Rs.2,976.10 in the intraday trade after opening marginally down at Rs.3,304.90. This is the sharpest single-day fall in the stock since May 2009.

Bangalore-headquartered Infosys posted Rs.1,818 crore (Rs.18.18 billion) profit for the quarter ended March 31, registering an increase of 17.1 percent year-on-year and just 2.1 percent sequentially.

The company’s consolidated income also increased less than expected 22 percent at Rs.7,250 crore (Rs.72.5 billion) during the fourth quarter of fiscal 201011. Sequentially the income has increased just two percent.

Infosys, generally regarded as benchmark for the Indian IT industry, missed market expectations of earnings three out of the four quarters.

Share price of other IT firms also slumped taking cues from Infosys. Third largest software exporter Wipro slumped 5.04 percent at Rs.449.60, while India’s largest software exporter Tata Consultancy Services closed 1.52 percent down at Rs.1190.55.

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