Shares of Infosys hit their fresh 52-week low of Rs 996.15 and dipped as much as 5.31 per cent on Friday after the second-largest software services exporter cut its FY17 revenue growth target for the second time in three months on an uncertain business outlook. At 11.19 am, shares of Infosys were trading 1.47 per cent down at Rs 1,036. The scrip opened the day at Rs 1,060 and had touched a high and low of Rs 1,080.70 and Rs 996.15, respectively, in trade so far. Later, the scrip closed 2.34 per cent down at Rs 1,027.40.
The IT major cut its revenue growth to 8-9 per cent in constant currency terms for the financial year ended March 31, 2017. Its previous revenue growth target, issued in July, was 10.5-12 per cent.
For the quarter ended September 30, 2016, the company reported 4.95 per cent rise in net profit at Rs 3,606 crore against Rs 3436 crore in the sequential quarter ended June 30, 2016. Gross sales of the company increased by 3.15 per cent quarter on quarter to Rs 17310 crore from Rs 16782 crore in the previous quarter.
Consolidated operating profit of the company increased by 5.63 per cent qoq to Rs 5,493 crore.
Reliance Securities in a research note said, “Infosys USD revenue stood above our estimates and EBIT margin was largely in line with estimate. However, a key dampener was Infosys lowering its FY17 constant currency revenue growth guidance more than expected to 8-9 (our expectation 9-10%) given challenging macroeconomic conditions and high degree of volatility. This has been the primary reason for the stock’s decline.” However, the brokerage house has ‘BUY’ rating on the stock.