Underperformance of Infosys

Underperformance of InfosysAccording to the news, it was reported that on 15 April, the Sensex fell by 300 point for Infosys for their fourth quarter earnings. The markets have not been able to recover from the loss till yet. Infosys, which is India’s best-known IT Company, is not performing well in the share markets. The reason for this underperformance could be revenue growth and the EPS (earnings per share).

Analysts have reported that for the first quarter, they have expected Infosys' top line to increase by 3.66% to Rs. 7,515.4 crore from Rs. 7,250 crore in the fourth quarter.

However, the margins for the first quarter are likely to fall to Rs. 1,738.7 crore from Rs. 1,818. That means there will be a decline of 4.36%.

The Wall Street is expecting 150 bps (basis points) cut because of wage hikes that were effective in April this quarter. In addition, the management has reported that 300 bps cut is likely because of currency and investments. Over the quarter, the Rupee increased up by an average 1.2 per cent against the dollar.

At the end of the last quarter, the Wall Street was expecting Infosys to do Rs. 150 per share for the full year but that number has now fallen to Rs. 139.