Infosys tanks 10% on disappointing Q1 earnings

Operational revenues, however, grew 8.7% at Rs 9,616 crore on q-o-q basis.

Infosys has tanked 10.2%, or Rs 252, to Rs 2,219 in opening trades after reporting lower-than-expected 1.2% quarter-on-quarter (q-o-q) drop in its consolidated net profit at Rs 2,289 crore (in rupee terms) for the quarter ended June 2012. Analyst had expected a net profit of around Rs 2,425 crore from the IT bellwether.

Operational revenues, however, grew 8.7% to Rs 9,616 crore on q-o-q basis. The operating profit margin was down 200 bps at 28%, while earning per share (EPS) was dropped to Rs 40.06 during the recently concluded quarter.

“Global currency volatility continues to be a big challenge for the industry,” said V. Balakrishnan, member of the board and Chief Financial Officer.

Infosys is expecting at least 19.7% year-on-year growth in its revenues at Rs 40,364 crore for the fiscal year ending March 31, 2013, while the EPS is expected to be at least Rs 166.46, translating into a year-on-year (y-o-y) growth of 14.4%.