Infosys shares plunged on Monday after the company reduced its dollar revenue forecast for the current fiscal year.
Stock prices of Infosys ended nearly 4% higher at Rs 1,122 on the Bombay Stock Exchange (BSE), recovering from an intra-day low of Rs 1,108.
India's second largest IT firm has cut its sales growth forecast to 6.4-8.4% in dollar terms from a previous estimate of 7-9%, despite posting a forecast beating net profit for second consecutive quarter in Q2 in the financial year ending March 2016.
"The revision in the US$, is mainly on the outlook of the company on the currency front. The company has also mentioned that it expects 2HFY2016 is weaker than 1HFY2016, and also that it is witnessing headwinds in some client accounts. We maintain our ACCUMULATE rating on the stock with a target price of Rs 1, 306," said Sarabjit Kour Nangra, VP Research - IT, Angel Broking.
However, the Bengaluru-based IT major has maintained its revenue guidance of 10-12% in constant currency terms.
Infosys' net profit rose 9.8% to Rs 3,400 crore in the July-September on a sequential basis, while revenue stood at Rs 15,635 crore.
In a surprise move, the company's chief financial officer Rajiv Bansal announced his resignation, who will be replaced by MD Ranganath.
"He's a brilliant CFO and we will miss him even as we respect his decision and wish him continued success in his future endeavors," NDTV Profit quoted Infosys CEO Vishal Sikka, as saying.
Ranganath, who has been with Infosys for the past 15 years, is currently the executive vice president and head of strategic operations at the company.
