Infosys Technologies tanks 10% in early trade on poor guidance

NEW DELHI: Infosys Technologies falls 10 per cent in early trade on Friday on the back of poor guidance for FY13. The company sees Q1 FY13 sales at $1771-1789 million while the FY13 revenues seen up 8-10 per cent against expectations of 12-14 per cent.

Infosys expects revenue to rise 8 to 10 per cent in the fiscal year ending March 2013 to $7.6 to $7.7 billion, the company said on Friday.

According to analysts, the stock is likely to fall to Rs 2200 level in coming sessions.

“We had a very difficult quarter with revenues declining sequentially. Our focus on high quality growth coupled with strong financial discipline helped us deliver on EPS guidance in US dollar terms. The global currency market volatility continues to be challenging for the industry,” said V Balakrishnan, CFO, Infosys

According to experts, uncertainty in global economy, currency appreciation and rising US rhetoric against shipping of jobs to low-cost locations weighs on IT sector.

Microsec Capital Ltd maintains ‘HOLD’ rating on the stock citing rupee appreciation which might affect the top-line growth in Q4 FY12 and slowdown in business climate globally.

At 09:16 a.m, shares of the company were trading 9.2% lower at Rs 2495. The stock has hit a low of Rs 2451.25 and a high of Rs 2540, so far in trade.