It does not take the markets too long to analyse Infosys’ results. Within seconds of announcement of the results, the stock price reflects what the market thinks about it. It was a poor start forfor FY17 with the first quarter number missing analysts’ expectation on the revenue front. The markets showed their disappointment by pushing the stock 9% lower. The June quarter numbers came as a surprise, especially when market was getting complacent on Infosys beating expectations as it did in it last four quarters.
Apart from revenue there are some more disappointments in the quarterly numbers. Here are five keyfrom the Infosys results.
1. The company reported 2.2% QoQ growth in dollar revenues but a 1.7% growth in constant currency terms which was mainly on account of lower volume growth which grew by 2.2% as compared to 2.4% in the previous quarter. Justifying the lower-than-expected numbers, Infosys CEO Dr.said “We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1.”