Infosys cuts FY19 EBIT margin guidance; stock dips 6%

Infosys has dipped 6% to Rs 1,099 on the BSE in opening deals on profit booking after the information technology (IT) major said its earnings before interest and tax (EBIT) will grew 22-24% for 2018-19 (FY19) as compared to 24.3% achieved in FY18.
At 09:26 am; the stock recovered from its early morning low and was trading 3.7% lower at Rs 1,126, as compared to 0.23% decline in the S&P BSE Sensex.

Thus far in the calendar year 2018, Infosys had outperformed the market by surging 12% against a marginal 0.4% rise in the benchmark index till Friday.

Infosys said while announcing its Q4FY18 results in post market hours on Friday that it expects revenue for FY19 to grow in the range of 6-8% in constant currency (CC) terms and 7-9% in US dollar terms.

“FY19 CC revenue guidance at 6%-8% came in line with street estimates however 100bps lowering of the EBIT margin range to 22%-24% came as a negative surprise”, analysts at Antique Stock Broking said in result review.