April 16, 2018 / 4:03 AM / a year ago

BUZZ-India's Infosys slumps on margin guidance

** Shares of Infosys Ltd plunge nearly 6 pct to 1102 rupees, their lowest since Feb. 14

** Stock posts biggest intraday pct loss since Aug 18, 2017

** The country’s second-largest IT services firm posted a 2.4 pct jump in March qtr profit on Friday

** Nomura says growth in developed markets was weak and among key verticals (Banking, Financial services and Insurance/Retail) growth was flat to negative, maintains ‘reduce’ rating on stock with a TP of 990 rupees

** The Bengaluru-based co forecast 6-8 pct revenue growth for the year to March in constant currency terms and FY19 operating margin range at 22-24 pct

** FY19 margin guidance surprised negatively - Morgan Stanley (MS)

** Credit Suisse says EBITA margin guidance of 22-24 pct (versus 24.3 pct in FY18) is 100 bps below expectations and is disappointing given that the currency is slightly supportive for now

** MS expects stock to pare some gains, given strong YTD price performance and disappointing outlook for next year

** Stock had risen 12.4 pct this year up to Friday

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