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Infosys net up, dollar guidance down, stock sinks

FPJ Bureau | Updated on: Thursday, May 30, 2019, 02:09 PM IST

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Bengaluru : Infosys Ltd on Friday reported double-digit net profit and revenue for April-June quarter but lowered annual revenue guidance in dollar value, resulting in its stock plunging on the bourses.  Though consolidated net profit grew 13.4 per cent year-on-year (YoY) to Rs 3,436 crore and revenue 16.9 per cent YoY to Rs 16,782 crore for the April-June quarter (Q1), the IT company lowered dollar revenue guidance for fiscal 2016-17 to 10-11.5 per cent from 11.8-13.8 per cent projected in April due to currency volatility.

As a result, Infosys’s scrip of Rs five per share (face value) plunged to a low of Rs 1,07.50 during intra-trading from a high of Rs 1,195 and as against Thursday’s closing price of Rs 1,175.85 and Friday’s opening price of Rs 1,186.35 on the BSE.  The revised revenue outlook (10-11.5 per cent) is based on June 30 exchange rate of Rs 67.53 per dollar and 10.8-12.3 per cent on March 31 exchange rate of Rs 66.26 per dollar.  In constancy currency, consolidated revenue for fiscal 2016-17 is expected to grow 10.5-12 per cent at June 30 dollar value (Rs 67.53).  Infosys had said in April that its annual revenue would grow 11.8-13.8 in dollar value and 11.5-13.5 per cent in constant currency of Rs 66.26 per dollar as on March 31.  In rupee value, however, the annual outlook has been revised marginally upwards to 13.7-15.21 per cent on June 30 exchange rate (Rs 67.53 per dollar) from 12.7-14.7 per cent given in April and 11.7-13.2 per cent of March 31 exchange rate (Rs 66.26).  About 97 percent of the IT outsourcing firm’s revenues is billed in dollar and euro currencies as export earnings.  Under the International Financial Reporting Standard (IFRS), Infosys’s net income in first quarter rose 7.4 per cent YoY to $511 million and gross revenue 10.9 per cent YoY to $2,501 million ($2.5 billion).

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Published on: Saturday, July 16, 2016, 12:04 AM IST