Infosys Ltd. (NASDAQ: INFY) is the king of IT-outsourcing in India, but today that king is finding itself under fire. The company said that it sees 8% to 10% for the year ending in March 2013 with a dollar-adjusted level of $7.55 billion to $7.69 billion. Analysts were looking for at least 10% growth and as much as 15% growth.
For the quarter which just ended, Infosys profit rose about 27% to $449 million on an adjusted basis and the results were more or less in-line with estimates in India. The company also ended the quarter with about $4.1 billion in cash on a converted basis.
Some hope may be on the way as better clarity comes into play in the next couple of months, but the news is clearly being taken as a negative with slower growth rates coming. Some of the issues around the company’s weak forecast are the outsourcing of jobs argument in America ahead of the election, a slow environment in Europe, and a slowing global growth story. Close to 75% of Infosys’ business is derived from the U.S. and Europe.
The stock is paying a steep price for having a disappointment today as shares are indicated down 14% at $48.88 after closing at $56.77 on Thursday. The 52-week trading range is $46.12 to $68.52. Wipro Ltd. (NYSE: WIT) is lower as well with an indicated drop of about 2.6% to $10.49.
JON C. OGG
Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.