Shares of India’s second-largest IT Company Infosys slumped over 8 per cent after the company posted a 12 per cent increase in its profit to Rs 5,686 crore for the March quarter, compared to the Rs 5,076 crore in the corresponding quarter of the previous fiscal.
At 12:02 pm, the stocks of IT company was down by 7.3 per cent to Rs 1,619.
The revenue for the period under review stood at Rs 32,276 crore, up 20 per cent year-on-year and 1.2 per cent quarter-on-quarter.
The company's revenue from operations rose 23 per cent to Rs 32,276 crore in the fourth quarter as against Rs 26,311 crore a year ago.
“Sustained momentum in FY22, large deal wins and robust deal pipeline gives us comfort to provide guidance of 13-15% in FY23. We Will scale cloud capacities further, expand automation, and strengthen employee value proposition," Infosys CEO Salil Parekh said.
However, analysts were expecting Infosys to guide for double-digit revenue growth for FY23 while expecting the IT major to retain its Ebit margin guidance in the 22 to 24 per cent band.
Mitul Shah, Head of Research at Reliance Securities said, “Infosys reported a subdued Q4 FY22 performance. Revenue, as well as margins, were below our expectations. Considering the industry-leading double-digit revenue growth, rising share of digital business (58.5 per cent of revenue), elevated EBIT margin levels vs. pre-Covid levels, and a consistent capital allocation policy, we have a BUY recommendation at present with a 1-Yr target price of Rs2,250, valuing the stock at 30x FY24 earnings.”
The voluntary attrition percentage stood at 27.7 per cent, 25.5 per cent, and 10.9 per cent. Spike in attrition led to margin contraction owing to salaries of employees to retain talent in the aftermath of the pandemic demand for work from home.