Shares of Infosys tanked over 7 per cent on Monday, wiping out Rs 53,509.71 crore from its market valuation, after the company's March quarter earnings report came in below expectations.
The stock tumbled 8.95 per cent to Rs 1,592.05 during the day on the BSE. It finally settled at Rs 1,621.45 apiece, lower by 7.27 per cent.
On the NSE, it plunged 7.22 per cent to settle at Rs 1,622.30 apiece.
The company's market valuation eroded by Rs 53,509.71 crore to Rs 6,82,101.64 crore on the BSE.
"Infosys results came worse-than-expected with rising attrition and weakening margins even though growth prospects appear bright. IT valuations may come under pressure dragging the index down," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
IT services major Infosys on Wednesday posted a 12 per cent rise in March quarter net profit. The software services major saw its net profit surge to Rs 5,686 crore and projected a 13-15 per cent revenue growth in the financial year that began on April 1, 2022 on the back of a "strong demand environment" and "robust deal pipeline". While the Q4 results scorecard reflects a 12 per cent year-on-year growth in net profit, the numbers are 2 per cent lower than the December quarter.
On why the Q4 numbers have trailed the street's expectations, Infosys CEO Salil Parekh, on Wednesday, said that while there has been a strong volume growth in the quarter, there was an issue with a client related to a contract situation.
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