Infosys Ltd, India's second-largest software-services exporter, saw its shares plummet to their lowest level in three years this morning despite announcing a rise of 24.7 per cent in net profit for the fourth quarter ended 31 March.
The performance was well below analysts' expectations; and moreover its guidance for the year ahead was disappointing.
Sales in the current fiscal year may be between Rs38,430 crore ($7.5 billion) and Rs39,140 crore, Infosys said in a statement filed with the Bombay Stock Exchange.
Infosys chief executive officer S D Shibulal said in a media statement that the year ahead ''looks challenging'' for information technology services. Analysts pointed out that the dollar has lately risen to new highs against the rupee.
The company's guidance is generally seen as a benchmark for the information technology. The National Association of Software and Service Companies (Nasscom) had predicted a growth of 11-14 per cent; but Infosys' estimate is well below this.
Shares of its biggest rivals Tata Consultancy Services Ltd (TCS) and Wipro Ltd too tumbled to their lowest in three months after the Infosys announcement.