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Infosys shares fall 4 pc after Q4 earnings

Business Finance

Press Trust of India  |  New Delhi 

Shares of IT major Infosys on Tuesday declined nearly 4 per cent after the company refrained from providing a revenue outlook for FY21, citing uncertainty amid Covid-19 outbreak that is expected to impact its business in the near-term.

The scrip fell 3.85 per cent to Rs 627.70 on the BSE.

On the NSE, it dropped 3.90 per cent to Rs 627.80.

After market hours on Monday, Infosys reported a 6.3 per cent rise in consolidated net profit for March quarter, but refrained from providing a revenue outlook for FY21, citing uncertainty amid COVID-19 outbreak.

The country's second-largest IT services company - which saw revenue growing 8 per cent to Rs 23,267 crore in the March quarter - anticipates a continued slowdown in the near-term influenced by a broad-based global economic recession.

"Our sense is that in the near-term we will see an impact on our business. We do not have a clear view of when the recovery will come back," Infosys CEO and MD Salil Parekh told reporters.

Parekh's views are similar to the sentiments echoed by peers like Wipro and Tata Consultancy Services -- both had cited future business uncertainty while announcing their quarterly earnings last week.

Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas, said Infosys reported below-than-expected revenue and EBIT margin performance.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, April 21 2020. 11:18 IST