Moneycontrol Bureau
Shares of Infosys took a knock after its March quarter earnings disappointed investor sentiments. Falling 7 percent intraday Friday, the stock ended down 6 percent at Rs 1996.25 on the BSE. IT index slipped 3 percent from its previous close.
Sarabjit Kour Nangra, VP Research-IT, Angel Broking maintains buy rating on the stock with a target price of Rs 2751 per share, indicating a 30 percent upside from current levels.
Its fourth quarter earnings missed street expectations on every parameter on Friday but FY16 dollar revenue growth guidance was a positive surprise. Additionally the country's second largest IT services exporter also surprised investors with a 1 for 1 bonus share issue. Net profit fell 4.7 percent sequentially to Rs 3,097 crore and revenues dropped 2.8 percent to Rs 13,411 crore in the quarter ended March 2015 because of pricing pressure and lower volumes.
It is the fourth major IT company in a row to announce disappointing results. Infosys posted 0.4 percent decline in constant currency revenue growth at USD 2,208 million during the quarter, which was far lower than its peers TCS (1.6 percent growth), HCL Technologies (2.7 percent) and Wipro (1.2 percent).
IT services provider expects FY16 dollar revenue to grow 10-12 percent in constant currency terms, which was better than the street forecast of 9-11 percent but below the NASSCOM guidance of 12-14 percent. The company aims for revenue growth of 6.2-8.2 percent in dollar terms and rupee revenue growth of 8.4-10.4 percent during FY16.
Meanwhile, rival company TCS was up 2 percent and Wipro was down 2 percent on the BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
