Infosys Shares Slump After Fourth-Quarter Net Profit Fell on Quarter

By Kosaku Narioka

Infosys Ltd. shares fell sharply Monday morning after the Indian information-technology services provider's fourth-quarter net profit fell 7.0% from the previous quarter.

The shares were recently 11% lower at 1,239.75 rupees after declining as much as 12% earlier.

Infosys said after Thursday's market close that net profit dropped to INR61.28 billion ($748.7 million) for the quarter ended March from INR65.86 billion the previous quarter, as revenue declined 2.3% to INR374.41 billion.

Indian markets were closed Friday for a national holiday.

Revenue from the financial-services sector, by far the biggest segment, dropped 3.7% from the previous quarter to INR108.18 billion.

Fourth-quarter net profit rose 7.8% and revenue increased 16% from a year earlier.

For the year that began in April, Infosys projected revenue to grow 4%-7% in constant-currency terms and operating profit margin of 20%-22%.

Jefferies analysts Akshat Agarwal and Ankur Pant said in a research note that the guidance on both revenue and margin suggests a weak demand outlook, and that they lowered their earnings forecasts for Infosys in the coming fiscal years.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

April 17, 2023 02:15 ET (06:15 GMT)

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