Infosys has tanked 9% to Rs 3,340 on the National Stock Exchange on reports that IT major expects sluggish growth in January-March (Q4FY2014) quarter mainly due to muted spending by clients, especially in the retail sector.
Infosys indicated that the company has continued to see weakness in client spending throughout the current quarter ending March 31, 2014 and the company may only be able to meet the lower end of its annual revenue growth guidance.
In January, Infosys had forecast revenue growth at 11.5-12.0% in FY2014.
The management indicated that at the broad level some of the clients have seen slowdown in their businesses; these are across various verticals leading to unanticipated project ramp downs and cancellations in 4QFY2014. In addition, the factors that led to slowdown in client sentiment in 4QFY2014 might impact the company’s revenues in first half (April-September) of FY2015, the Angel Broking said in a note.
A combined 2.09 million shares changed hands on the counter so far on the NSE and BSE.
Infosys indicated that the company has continued to see weakness in client spending throughout the current quarter ending March 31, 2014 and the company may only be able to meet the lower end of its annual revenue growth guidance.
In January, Infosys had forecast revenue growth at 11.5-12.0% in FY2014.
The management indicated that at the broad level some of the clients have seen slowdown in their businesses; these are across various verticals leading to unanticipated project ramp downs and cancellations in 4QFY2014. In addition, the factors that led to slowdown in client sentiment in 4QFY2014 might impact the company’s revenues in first half (April-September) of FY2015, the Angel Broking said in a note.
A combined 2.09 million shares changed hands on the counter so far on the NSE and BSE.
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