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Infosys Q4 Results Disappoint But CEO Remains Hopeful for Future Growth

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Infosys, one of India’s largest IT services companies, has been hit by a major setback in the wake of its Q4 results. The company’s shares tumbled over 10% in early trading on Wednesday, following a lower-than-expected profit announcement. Infosys announced a profit of Rs 5,078 crore for Q4, compared to Rs 5,197 crore in the previous quarter, which has caused concern among investors and industry experts.

The poor performance of Infosys has also had a knock-on effect on other IT stocks, with many other companies in the sector experiencing a decline in their share prices. This includes industry giants like Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Tech Mahindra, among others. This has led to a general decline in the Indian stock market, with the Nifty IT index falling by nearly 6%.

The reasons for Infosys’ disappointing results are varied, but industry experts point to factors like lower margins, higher attrition rates, and increased competition as contributing factors. However, despite these challenges, Infosys CEO Salil Parekh remains optimistic about the company’s future growth prospects.

“With a high probability of recession in US, UK, and many European countries, we see uncertainties continuing around the order outlook for the next 1-2 quarters.” says Divam Sharma, Founder of Green Portfolio.
“However, some good value opportunities are gradually emerging in the sector. Infosys is now trading at a PE multiple of 21.2 times, anything below 19 times is a great opportunity for investing in the stock.” says Divam.

Overall, the drop in Infosys’ share price is a significant setback for the company and the IT industry as a whole. However, it’s important to remember that the IT industry has been a key driver of growth in the Indian economy, and has contributed significantly to job creation and technological innovation. While the current situation is challenging, it also presents an opportunity for investors to reassess the market and make informed decisions.

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Abel Mathew

Marketing Enthusiast | Product Marketing at smallcase | Cinephile ----The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Smallcase Technologies Private Limited does not uphold nor promote any of the views / opinions.

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Infosys Q4 Results Disappoint But CEO Remains Hopeful for Future Growth

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