Infy stock takes a pummelling on Street

Shares of IT major Infosys fell by over 5 per cent after the company slashed its revenue guidance for the second time this year due to its recent performance and "near-term uncertain business outlook".

Even after a positive opening, shares of the company failed to hold on to the gains and dipped 5.31 per cent to Rs 996.15 -- its 52-week low on BSE.

At NSE, shares of the company plunged 5.33 per cent to hit its one year low of Rs 996.25.

IT major Infosys on Friday posted a 6.1 per cent rise in consolidated net profit at Rs 3,606 crore for the September quarter and slashed its revenue guidance for the second time this year due to its recent performance and "near-term uncertain business outlook".

The Bengaluru-based firm had reported a net profit of Rs 3,398 crore in the year-ago period, it said in a BSE filing.

The consolidated revenue for the quarter was up 10.7 per cent at Rs 17,310 crore, from Rs 15,635 crore in July-September 2015. The figures are as per Indian Accounting Standard (Ind AS).

Revenues are now expected to grow 8-9 per cent in constant currency, translating to 9.2-10.2 per cent in INR terms and 8.2-9.2 per cent in USD terms.

This is the second time the company has reduced its revenue guidance for the fiscal. In July, Infosys had said it expected revenues to grow 10.5-12 per cent in constant currency terms, lower than the previously estimated 11.5-13.5 per cent for the full year 2016-17.