Reacting to below market expected quarterly results, shares of Infosys closed lower by 9 per cent on Friday.
The IT major&’s revenue was Rs.16,782 crore for the quarter ended June 30 on a growth of 1.4 per cent (quarter on quarter). The revenue grew 16.9 per cent year-on-year(YoY).
The net profit was Rs.3,436 crore for the same quarter, down 4.5 per cent QoQ. It was 13.4 per cent higher YoY.
“We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1,” Vishal Sikka, CEO, said.
“Despite this, I am very encouraged by our progress in the execution of our strategy,” he added.
The company&’s operating profit fell to Rs.4,047 crore for the first quarter of current financial year against the fourth quarter of last financial year.
The IT major’s shares closed at Rs.1072.25, down 8.8 per cent or Rs.103.6, at the Bombay Stock Exchange.