New Delhi: The impact of the weak results of the March quarter is being seen on Monday on the shares of Infosys, one of the country’s largest IT companies. Infosys shares fell nearly 11 per cent in the morning trade itself. The company’s earnings in the quarter from January to March were less than expected.
Infosys’ profit in the fourth quarter increased by 7.8 per cent to Rs 6128 crore. Earlier in the December quarter, the company had earned a profit of Rs 6586 crore. That is, the profit of the company declined in the quarter of March as compared to the quarter of December.
Brokerage firms have cut the ratings of Infosys and its direct impact is visible on the IT index, which has lost more than 6 per cent. Infosys shares are trading at their 52-week low today after falling 11 per cent. Infosys stock touched a 52-week low of Rs 1219. Infosys shares opened at Rs 1250.30 this morning and went as low as Rs 1185.
However, the company’s shares were already breaking even before the March quarter results came out. But after the result, there has been a huge drop in ADR. Both the company’s profit and income have been weaker than expected.
What is the main reason?
The weak quarterly results of the country’s two leading IT companies Infosys and Tata Consultancy Services (TCS) have increased the concern of investors. Experts believe that the reason for the decline in the performance of these two companies is the banking crisis in America.
The Banking Financial Services and Insurance (BFSI) segment is the most important for the IT sector. The American banking crisis has hurt this. America generates the most revenue for Infosys. The performance of Infosys’ BFSI has been disappointing due to high exposure.
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