Infosys shares extend losses, hit four-month low

By: | Updated: November 18, 2015 4:23 PM

Infosys share price fell as much as 4.60 per cent on Wednesday and slid for the fourth consecutive session.

InfosysInfosys share price fell as much as 4.60 per cent on Wednesday and slid for the fourth consecutive session. (PTI)

Infosys share price fell as much as 4.60 per cent on Wednesday and slid for the fourth consecutive session. Infosys in conference call on Monday said that the company was seeing pressure on margins in the ongoing quarter on the back of lower spending by top clients.

At 12.07 pm, Infosys was trading 2.54 per cent down at Rs 1034.15 on BSE. The scrip opened at Rs 1044 and had touched a high and low of Rs 1044.35 and Rs 1030.50, respectively, in trade so far. Sensex was down 28.56 points, or 0.11 per cent, at 25,835.90.

Later, the scrip closed 3.89 per cent down at Rs 1019.85.

The scrip also fell to its lowest level since July 20 when it was at Rs 1,001.90.

Infosys Chief Operating Officer Pravin Rao at an investor call said that there were few challenges the company was facing currently with the long holiday period in the month of December putting pressure on the business momentum.

He said all the business verticals for Infosys have performing well with a bounce bank witnessed in both retail and financial services segment. However there were challenges from the verticals of telecom and banking.

Infosys has retained its annual revenue guidance of 10-12% for FY12 and expects to return back to the industry growth rate only in FY17.

On the operating profit margin, Infosys CFO M D Ranganath said that in the near term they expect face certain pressure as the company will be making growth led investments.

In the past three trading sessions, the share price of the IT major declined 4.33 per cent to Rs 1,061.10 on November 17. The share price of the company was at Rs 1,109.15 on November 11.

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