Infosys Q4 numbers have clearly disappointed, the headlines are quite terrible, said Shankar Sharma of First Global. Sharma told ET Now that after surprising positively in the last quarter, Infosys seems to have erased all the gains that it made after good Q3 results.
Stating that the picture doesn’t look ‘pretty’ Sharma went on to opine that the IT sector may no longer be a relatively safe haven to invest in. “There are very few places or sectors left to hide in,” he added.
According to Sharma, global economic conditions are still shaky and that is hurting emerging markets.
IT major Infosys on Friday reported a 3.3 per cent increase in its consolidated net profit to Rs 2,394 crore for the fourth quarter ended March 31, 2013.
The revenues for the reported quarter were up 18.09 per cent to Rs 10,454 crore from Rs 8,852 crore in the year-ago period, Infosys said in a BSE filing.
“Global economic uncertainties remain challenging for the IT industry,” Infosys CEO and Managing Director S D Shibulal said, adding “We are making all the investments necessary to differentiate ourselves in the market place while positioning ourselves as a partner of choice for our clients.”
The company said it expects revenue to grow by 6-10 per cent in the current fiscal, which is lower than Nasscom’s estimate.
In February this year, software industry body Nasscom said information technology and IT-enabled services sectors are expected to grow 12-14 per cent in 2013-14 fiscal.
Reacting to the results, shares of Infosys plunged 18.47 per cent to Rs 2,379 apiece in early trade on the BSE.