Shares of Infosys extended losing momentum on Tuesday and fell over 1 per cent, hitting fresh 52-week low, on the Bombay stock Exchange as some of rating agencies downgraded stock following chief executive officer Vishal Sikka’s shocking exit.
Extending previous session losses, shares of the company declined as much as 1.37 per cent to hit 52-week low of Rs 861.50 apiece on the Bombay Stock Exchange. The stocks were currently trading at Rs 871.55 against previous close price of Rs 873.50.
Paring early losses, shares of the company were trading 0.22 per cent higher at Rs 875.30 apiece on the National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 31,359.04, up 100.19 points, or 0.32 per cent, at 12:05 hours.
Infosys has deferred salary hikes for employees to July and even later in case of senior executives as the Indian tech industry struggles to cope with uncertain environment and visa-related issues in key markets like the US, reported PTI.
Typically, the country’s second-largest software services firm rolls out increments from April but this year the hikes have been pushed back to next quarter. Infosys has over two lakh employees.
In an e-mail to employees, Infosys Chief Operating Officer UB Pravin Rao said the compensation review for employees ranked JL5 (job level 5) and below will be effective from July.
For other employees, the same would be rolled out in subsequent quarters.
He also sought to assuage employee concerns over possible layoffs but cautioned there would be “some performance-based exits” as has been the case in the past.
When contacted, an Infosys spokesperson confirmed the development.
The decision comes at a time when there are reports of layoffs across the industry. While most companies have attributed the retrenchment to performance issues, many believe these steps are aimed at controlling costs.
Cognizant has rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.
Wipro is also learnt to have asked about 600 employees to leave as part of its annual “performance appraisal” even as speculations were that the number could go as high as 2,000.
However, Infosys isn’t the only company that has deferred salary hike for employees. Tech Mahindra is yet to revise wages for employees with more than six years of experience.
Indian IT firms are facing intense pressure given an uncertain environment and stricter work permit regimes in countries like the US, Singapore, Australia and New Zealand.
Indian IT firms — which get a bulk of their revenues from the North American market — are now hiring more locals there as the US administration seeks to make work visa norms more stricter.
Infosys, while tightening belt at home, plans to hire about 10,000 American workers over the next two years and will set up four new innovation centres in the US.
Country’s second largest software exporter Infosys Ltd on Wednesday said its US-based subsidiary, Infosys Public Services Inc, has entered into partnership with the Texas Department of Family & Protective Services (DFPS) to modernize the agency’s IMPACT (Information Management Protecting Adults and Children of Texas) system.
“Infosys Public Services and Texas Department of Family & Protective Services to Modernize State’s Child Welfare Information System,” the company said in a filing to the Bombay Stock Exchange on March 07, 2017.
IMPACT is the primary case management and administrative system used by DFPS to deliver child welfare related services.
In Phase 2 of IMPACT Modernization, the IMPACT system will be modernized into a modular, mobile-enabled application with automated workflows and self-service capabilities for Child Protective Services, Adult Protective Services, Child Care Licensing, and Prevention and Early Intervention program areas. This will improve efficiency and effectiveness of caseworkers, streamline operations, and reduce their administrative burden, enabling them to spend more time with their clients, it said.
The company further said that, once the modernization program is operational, IMPACT will continue to comply with the federal Statewide Automated Child Welfare Information System (SACWIS) standards, including the State’s business, data security, and technical requirements.
Meanwhile, shares of the company closed at Rs 1,007.25 apiece, down 1.22 per cent, from previous close on BSE.
Shares of Infosys tumbled over 5 per cent, hitting 52-week low, on the Bombay Stock Exchange after the IT bellwether trimmed its revenue guidance to 8-9 per cent for FY17 from 10.5-12 per cent in constant currency terms.
Weighed down by the development, shares of company declined as much as 5.31 per cent and touched 52-week low in intra-day to trade at Rs 996.15 apiece on Bombay Stock Exchange.
In a similar fashion, stocks of company fell 1.03 per cent to Rs 1,041.50 apiece on the National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 27,679.11, up 36 points, or 0.13 per cent, at 12:05 hours.
“Infosys launches Skava Commerce, a new standard for modern, mobile-first and modular e-commerce platforms,” the company said in a filing to the Bombay Stock Exchange on September 28, 2016.
Skava is a Silicon Valley based e-commerce startup acquired by Infosys. It developed Skava Commerce to allow businesses to leverage flexible cloud-based microservices and white label applications to quickly launch new offerings, improve conversion rates of digital channels, create highly responsive digital properties, and more.
The company further said that, the platform can and easily integrate into existing technologies, while also providing a future-ready architecture that will enable next generation shopping experiences leveraging artificial intelligence (AI) and machine learning, natural language processing and virtual reality (VR).
Skava Commerce provides a comprehensive suite of e-commerce microservices that can be used independently or in conjunction with others, and implemented without any downtime, it said.
Commenting on the launch, Skava, Chief Executive Officer, Arish Ali said, “With the introduction of Skava Commerce we are expanding on our user-first approach, delivering a platform that’s modern, modular and mobile-first, and one that evolves with business and customer needs.”
Meanwhile, shares of Infosys were trading at Rs 1,041.80 apiece, up 0.13 per cent, from previous close on BSE at 14:36 hours.
Boosted by the development, shares of company gained as much as 1.40 per cent to trade at 1048.90 apiece on Bombay Stock Exchange.
In a similar fashion, stocks of company rose 1.28 per cent to Rs 1,045.10 apiece on National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 28,820.26, up 288.15 points, or 1.01 per cent at 12:05 PM.
“The consolidated net profit of the IT services provider firm stood at Rs 3,028 crore during the same period a year ago,” Infosys Ltd said in a filing to the Bombay Stock Exchange on July 15, 2016.
Further, consolidated total income of Infosys rose 16 per cent at Rs 17,535 crore during Q1 FY17, as compared to Rs 15,110 crore during the same quarter last fiscal.
On standalone basis, Infosys’s total income grew 12.8 per cent at Rs 15,181 crore during the quarter ended June 30, 2016, as against Rs 13,459 crore in the corresponding period last year. The net profit of India-based IT giant surged 10 per cent to Rs 3,180 crore during the April-June quarter of 2016, from Rs 2,891 crore during the corresponding period previous year.
Following the earnings announcement, shares of Infosys were trading at Rs 1,068.20 apiece, down 9.16 per cent, from previous close on BSE at 11:02 hours.
Shares of IT giant, Infosys jumped 8 per cent to hit 52-week high in early morning trade after India’s second-largest information technology (IT) services firm said that it expects strong revenue growth of 11.5 per cent-13.5 per cent in consent currency (CC) in FY 2016-17.
The company expects revenue to grow by 11.8-13.8 per cent in dollar terms, faster than industry guidance for the fiscal year ending March 31, 2017, Infosys said in a statement.
Vishal Sikka led Infosys Ltd, on Friday, reported fourth quarter numbers that beat Street estimates, a sign that the software giant is firmly on the recovery road under Sikka’s charismatic leadership.
The country’s second biggest software exporter posted a consolidated net profit of Rs 3,597 crore in the fourth quarter ended March 31, 2016, up by 3.8 per cent on a sequential basis, Infosys Ltd said in a filing to the Bombay Stock Exchange (BSE).
In Q3 FY 2015-16, the company had posted a consolidated net income of Rs 3,465 crore, Infosys Ltd added.
Buoyed by Q4 numbers, shares of the company increased 6.57 per cent to Rs 1249.05 apiece on Bombay Stock Exchange.
Shares of the company surged 6.50 per cent to Rs 1,248.90 apiece on National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 25,751.00, up 124.25 points, or 0.48 per cent, at 11:52 hours.
The market cap of HDFC jumped by Rs 4,777.47 crore to Rs 183,004.82 crore last week when the 30-share Sensex logged a second straight weekly gain, advancing by 72 points to end at 24,717.99 driven by robust foreign fund flows amid hopes that the RBI may cut interest rates as the government stuck to its fiscal prudence commitment, and on strong global cues after ECB’s robust easing measures and an oil price rally.
ITC witnessed an Rs 4,100.76 crore rise in its market value to Rs 258,187.17 crore last week while the market cap of ONGC surged by Rs 3,507.75 crore to Rs 175,473.10 crore.
The market capitalisation of RIL surged by Rs 3,012.13 crore to Rs 329,082.12 crore while that of drug major Sun Pharma climbed by Rs 2,539.03 crore to Rs 208,838.67 crore.
HDFC Bank’s market cap advanced by Rs 1,870.26 crore to Rs 259,928.45 crore last week while that of TCS jumped by Rs 1,369.45 crore to Rs 466,203.25 crore and that of HUL rose by Rs 119.01 crore to Rs 183,745.09 crore.