Infosys Profit Disappoints, Shares Fall
Infosys Technologies Ltd. posted a quarterly profit that fell short of expectations and cautioned that a slow economic recovery and currency fluctuations could derail growth in India’s outsourcing sector this year.
The Nasdaq-listed technology bellwether raised its forecast for the fiscal year on hopes of sustained demand for outsourcing services, but that forecast also came in below analysts’ expectations, weighing on the company’s shares. Infosys shares closed down 4.8 percent at 3212.3 rupees ($71) on the Bombay Stock Exchange.
Infosys is the country’s second-largest software exporter by revenue after Tata Consultancy Services Ltd.
As the first major Indian company to report its earnings, Infosys’s results are seen as an indicator of the technology sector’s health. Sector leader Tata Consultancy is slated to report its earnings on Jan. 17, while third-ranked Wipro Ltd. reports on Jan. 21.
