Can you expect India’s IT bellwether performing below expectations? Not always! In a volatile market, both big and small companies move according to the tide. But Infosys disappointed investors on October 12 when its shares went down below expectations, i.e. by almost 9 percent. The software services provider, which has been in the good books of investors for years together, has been delivering since January this year, a sequence of disappointing growth targets.
What Infosys Q2 results forecasted about its estimated growth rate at 8-10 percent was soon cut to 5 percent, surprising analysts and investors alike. No wonder the firm lost market shares to TCS, its local rival after reporting for the quarter ended September 30, weaker-than-expected operating margins. As per internal statistics in terms of client addition, Infosys exhibited its slowest pace of addition in six quarters, adding only 39 clients in the latest quarter. But a positive atmosphere still prevails!