RIYADH: Indian stocks fell on Monday after their longest winning streak since last October, as Reliance Industries slipped after a weaker-than-expected earnings report, although a strong performance by private lender ICICI Bank limited gains. losses.
The NSE Nifty 50 index was down 0.19% at 16,687.8, as of 0354 GMT, while the S&P BSE was down 0.2% at 55,958.76.
Last week, the indices rose more than 4% each in their best performances since February 2021.
India’s most valuable company Reliance fell 3.4% in its biggest intraday percentage decline in more than three weeks, after its first-quarter profit missed estimates due to a spike in costs .
Infosys misses profit estimates as costs rise
The Indian company Infosys Ltd. reported lower-than-expected June-quarter profit on Sunday, hurt by higher employee spending, but the IT services company raised its full-year revenue outlook, citing a strong demand outlook.
Infosys’ biggest IT rival, Tata Consultancy Services, along with smaller rivals such as HCL Technologies and Wipro, have seen their margins erode as they battle higher talent turnover across the industry and try to retain their employees.
Overall expenses jumped more than 29%, while Infosys’ operating margins for the June quarter were 20.1%, down 3.6% year-over-year . The company also maintained its operating margin forecast for the full year at 21% to 23%.
The company was investing in talent through hiring and competitive compensation reviews, which will impact margins immediately, Infosys chief financial officer Nilanjan Roy said in a statement.
However, Bengaluru-based Infosys expects revenue growth of 14% to 16% for the fiscal year ending in March, slightly up from its April forecast of 13% to 15%.
“We are seeing good volume growth, a good pipeline of large deals and this gives us the confidence to increase revenue guidance,” CEO Salil Parekh said on a media call.
Infosys saw its large signings drop around 35% to 1.7 billion rupees, while gross customer additions in the quarter fell to 106 from 113 a year ago.
But Parekh said the company is seeing good traction with large customers.
Infosys’ consolidated net profit rose 3.2% to 53.60 billion rupees ($12.5 million), but missed analysts’ estimates of 56.26 billion rupees, according to Refinitiv data. .
April-June quarterly earnings reports started on a weaker note for Indian IT services firms, with TCS, HCL Technologies and Wipro also missing their first-quarter earnings estimates.
Infosys’ operating revenue jumped 24% to 344.70 billion rupees.
(Contributed by Reuters)