Infosys' Shares Crash 11% To Witness Biggest Single Day Drop Since 2019 After Disappointing Q4 Results

Shares of IT giant Infosys crashed more than 10% on Monday morning and dragged stocks of peers as well after lower than expected Q4 financial results and a dismal revenue outlook. It highlighted the impact of banking turmoil in major markets, the United States and Europe.

Infosys Shares Bleed

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Infosys shares are currently more than 11% down as of today morning. TCS too, is down more than 2%, whereas Sensex and Nifty are both down more than 1%.

Infosys shares' 11% drop today is its biggest intraday percentage drop since October 2019.

Infosys had last week reported an 8% year-on-year (YoY) growth in consolidated net profit for the quarter ended March 2023 at Rs 6,128 crore. Meanwhile, consolidated revenue for the period increased by 16% on year to Rs 37,441 crore.

Last week, India's second-largest IT services firm Infosys had said that it expects revenue growth of 4%-7% for the fiscal year ending March 2024, well below analysts' expectations of 10.7% growth, as clients deferred spending due to growing fears of a recession, Reuters report mentioned. The previous slowest growth was a 5.8% increase in FY2018.

The company missed analysts' estimates, with analysts expecting Q4 profit after tax (PAT) at Rs 6,550 crore and revenue at Rs 38,850 crore, as per ET Now, whereas as per Reuters, Infosys¡¯ Rs 6128 crore consolidated net profit also missed analysts' expectations of Rs 6624 crore, according to American-British global provider of financial market data Refinitiv.

Also Read: Infosys President Mohit Joshi To Join Rival Tech Mahindra

25% Of IT Sector Revenue From US

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Infosys' outlook followed a disappointing quarterly report from larger rival Tata Consultancy Services, highlighting worries for the sector which earns more than 25% of its revenue from just the U.S. and European banking, financial, services and insurance sector, as per Reuters.

The collapse of two mid-sized US banks in March, as well as Switzerland¡¯s second-biggest bank Credit Suisse, shook the financial ecosystem and drove an extraordinary government effort to reassure depositors and backstop the system.

Also Read: 'India Best Place To Work During Recession': Infosys Co-founder

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