Q1: Infosys disappoints street; stock plunges over 8%

IT major, Infosys reported consolidated profit dipped by 4.5% at Rs 3436 crore for the quarter ended on June 30 (Q1FY16).

“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,” said Vishal Sikka, CEO, Infosys. 

Soon after the announcement the share of the company crashed over 8% on BSE. At 1019 hours, the stock were trading at Rs 1109, down 5.77%. Follow LIVE stock price here.

On quarterly basis, the EBIT stood at Rs 4800 crore as against Rs 4220 crore in the last quarter.

The company said that its consolidated revenues for the first quarter ended June 30, 2016 increased by 1.4% and an year-on-year rise of 16.9%. 

Operating profit dropped 4.1% on a q-o-q basis, at Rs 4,047 crore but grew 17.4% on an y-o-y basis. 

Net profit of the company, on a consolidated basis, dropped 4.5%, at Rs 3,436 crore and against a growth of 13.4% against the same period of last year. 

The company reduced the currency guidance for the current fiscal year.

More to follow..