The outlook for India’s IT industry has just become more uncertain. On Thursday, Infosys, the country’s second-biggest software company, reported lower-than-expected third quarter numbers. Its net profit rose a 14.20% to Rs1,780 crore. And revenue increased 23.8% to Rs7106 crore.
Other numbers were also flat for Infosys. On a quarter on quarter basis, its operating margins stood at 30.2%. And volume growth was a mere 3.1%.
Thursday’s figures were below most analyst expectations. Infosys shares plummeted 4.82% on the BSE to close at Rs3,212.30.
Company CEO S. Gopalakrishnan tried to emphasize the positive. He said third quarter were typically slower than others in terms of growth. Gopalakrishnan also added that Infosys was likely to do better than the industry average in the coming year.
And in other news, both consumers and the government could finally get some relief from rising prices of food. New figures show India’s food price index grew at 16.91% in the period to 1 January. The previous week it had gone up 18.32%. This is the first sign of easing in food inflation in six weeks. It comes soon after the government banned exports of onions and encouraged their import.
And before we leave you, here’s how Indian markets did on Thursday. The Sensex plummeted 351 points to 19,183. And the Nifty fell 111 to 5,752.