Infosys shares tanks 6% on lower margin guidance

Shares of the company today opened on a weak note and fell to an intra-day low of Rs 1,099, down 5.98 percent from its previous closing price.

New Delhi: Shares of Infosys on Monday fell as much as 6 percent in morning trade the IT bellwether reported less-than-expected margin guidance for fiscal year 2018-19. The company's shares fell to an intra-day low of Rs 1,099, down 5.98 percent from its previous closing price. On NSE, the stock fell 5.92 percent to an intra-day low of Rs 1,102.00.

Infosys' scrip was the biggest contributor to the losses on the Sensex.

Infosys, on April 13, reported a consolidated net profit of Rs 3,690 crore, or Rs 16.98 per share, in January-March 2018 quarter as compared to Rs 3,603 crore, or Rs 15.77 a share in the same period a year back.

For 2018-19, Infosys expects its revenue to grow in the range of 6-8 percent in constant currency terms and 7-9 percent in the US dollar terms. For financial year 2018-19 Infosys expects operating margin range at 22 percent to 24 percent.

The company said its revenues grew 5.6 percent to Rs 18,083 crore in the January-March quarter compared with Rs 17,120 crore in the year-ago period. Net profit was up 11.7 percent at Rs 16,029 crore, while revenues grew 3 percent to Rs 70,522 crore in FY2017-18 over the previous year.

Infosys also tried to cheer investors as it announced a dividend of 20.50 rupees ($0.3141) per share for the fiscal year ending March 2018 and recommended a special dividend.

With Agency Inputs