Infosys hits 52-week low on FY17 revenue guidance cut

The stock has hit 52-week low of Rs 996, down 5% after Infosys cut its revenue guidance for FY17 to 8%-9%

Infosys hit 52-week low of Rs 996, down 5.3% on the BSE, after the company lowered its revenue guidance for FY17 to 8%-9% from 10.5%-12% in constant currency terms.

The stock had fallen nearly 8% from its intra-day high of Rs 1,081. It is trading at its lowest level since July 20, 2015 on BSE.

“The company’s revenues are expected to grow 8.0% - 9.0% in constant currency for the fiscal year ending March 31, 2017,” Infosys said in a press release.

Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance.” said Dr. Vishal Sikka, CEO.

Infosys reported a better than expected 4.9% growth in consolidated net profit at Rs 3,606 crore for the second quarter ended September 30, 2016 (Q2FY17) over the preceding quarter. Rupee revenue grew 3.1% to Rs 17,310 crore and dollar revenue was up 3.5% at USD 2,587 million on sequentially.

Analysts on an average expected profit of Rs 3,591 crore on revenues of Rs 17,224 crore for the quarter.

Operating margins expanded 80 basis points (bps) sequentially to 24.9% and volume growth 4.0% during the quarter.

“Our margins expanded during the quarter on the back of further improvement in operational efficiency.” Said M.D. Ranganath, CFO.

At 10:22 am, the stock was down 2.5% at Rs 1,026 on the BSE. A combined 9.41 million shares changed hands on the counter on the BSE and NSE.