Infosys sales guidance disappoints, shares plunge

AP News
Posted: Apr 13, 2012 12:17 AM
Infosys sales guidance disappoints, shares plunge

Infosys Technologies reported quarterly profit of $463 million Friday and said its revenue will grow more slowly than the industry's this fiscal year, eroding its position as India's outsourcing bellwether.

Infosys shares plunged 11 percent in Mumbai.

Net income for the quarter ended March grew 15.2 percent in dollar terms from a year earlier to $463 million. Sales grew 10.5 percent, to $1.8 billion, in line with expectations.

A survey of analysts by FactSet predicted quarterly sales of $1.8 billion and net income of $443.7 million.

Infosys said revenue for the fiscal year ending March 2013 would grow 8 to 10 percent, to between $7.6 billion and $7.7 billion _ less than industry body Nasscom's forecast of 11 percent to 14 percent sales growth for the industry.

"The year ahead looks challenging for the IT services industry, with slow recovery in the global markets," said Infosys chief executive S.D. Shibulal in a Friday statement.

The guidance unnerved investors worried about the impact of global uncertainty on India's outsourcing sector, dragging shares of competitors Tata Consultancy Services down 3.2 percent and Wipro down 1.2 percent in morning trade.