Infosys Plunges Most in a Year After Forecast Falls Short

By Zachary Tracer - Apr 13, 2012

Infosys Ltd. (INFO), India’s second largest software-services exporter, sank the most in a year in New York trading after forecasting sales that missed analysts’ estimates.

American depositary receipts of the Bangalore, India-based company tumbled 13 percent to $49.15 at the close in New York, their biggest drop since April 15, 2011. The stock earlier slid as much as 15 percent for the biggest decline in nine years. Infosys’ Mumbai-traded shares lost 13 percent to 2,402.55 rupees, the equivalent of $46.64.

Sales in the year that began April 1 may be between 384.3 billion rupees ($7.5 billion) and 391.4 billion rupees, Infosys said in a statement today. Analysts expected revenue of 396.3 billion rupees for the period, the median of 64 estimates compiled by Bloomberg. The company also reported fourth-quarter sales that were lower than analysts predicted.

“Their growth rate for next year is below industry levels,” Joseph Foresi, a Boston-based analyst at Janney Montgomery Scott LLC. who has rated Infosys ADRs neutral since Feb. 28, said by phone. “Infosys has typically outperformed the industry.”

ADRs of Wipro Ltd. (WPRO), India’s third-largest software exporter, dropped 7.2 percent in New York to $9.99, the biggest drop since August.

The Bank of New York Mellon Corp. (BK) India ADR Index slid 6.5 percent, the largest drop since August, to 1,016.63, the lowest level since January.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net
®2012 BLOOMBERG L.P. ALL RIGHTS RESERVED.