by Christopher Freeburn | April 15, 2014 12:48 pm
On Tuesday, India-based Infosys (INFY) posted a higher-than-expected quarterly profit, but signaled slower sales growth during the current fiscal year. Investors didn’t like the news, sending INFY shares down almost 7% in mid-day trading.
During the fiscal quarter that ended in March, INFY posted a net profit of 29.92 billion Indian rupees, topping the 28.63 billion-rupee profit that analysts had forecast. INFY said it generated sales of 128.75 billion rupees, up 23% from the year-ago quarter, the Wall Street Journal noted.
For the current fiscal year, INFY anticipates sales in U.S. dollars to grow by between 7% and 9%. That is significantly less than the 15% sales growth projected for the software outsourcing industry. It is also below the 11.5% U.S. dollar-denominated sales growth INFY reported during the last fiscal year.
Last week, INFY noted that CEO S.D. Shibulal is scheduled to retire in March 2015, but will step down earlier if the company locates a successor prior to the date.
On Monday, Infosys stock closed at $55.58 per share. Over the past 12 months, Infosys stock has gained more than 30%.
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Source URL: http://investorplace.com/2014/04/infy-infosys-stock-sinks-weak-sales-forecasts/
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