Infosys stock slips nearly 9% on weak revenue growth outlook

Infosys stock slips nearly 9% on weak revenue growth outlook

Shares of IT outsourcer Infosys came under tremendous selling pressure in morning trade on Thursday after the company announced that it was expecting this fiscal's revenue growth to be weak.

Infosys said it expected its revenue would likely grow 11.5 per cent year-on-year in 2013-14, lagging peers like TCS and HCL Tech.

The expected growth rate also lags industry body Nasscom's estimated growth rate of 13 per cent for the industry.

Addressing a gathering of investors on Wednesday, Infosys' executive chairman Narayana Murthy said, "We expect to be somewhere between 11.5 percent and 12 percent in our revenue growth. Much more like 11.5 percent compared to what is being proclaimed as the Nasscom industry growth rate and that is about 13 percent."

He admitted that the company failed to take advantage of the rupee depreciation, which benefitted exporters a lot.

In response to weak revenue forecast, stock in Infosys slipped as much as 9 per cent in early morning trade on Thursday. As of 09.30 a. m., Infosys shares traded 7.4 per cent lower at Rs 3,399.90 apiece on the 50-share Nifty benchmark.

Barclays slashed its target on Infosys from Rs 4,300 to Rs 3,960 a share, while Bank of America Merrill Lynch slashed its target on the stock to Rs 4,000 a share.

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