Infosys stock is down almost by 20% in a year. 📉
A data-driven analysis 🧵
#infosys
Infosys is one of the leading IT companies in India, with a market cap of over 5 trillion rupees.
A consistent performer in the past - delivered strong revenue growth and dividends.
However, stock has dropped steadily.
What is behind this trend?
Let's look at data.
Disappointing Q4 Results
The company reported a net profit of 51.97 billion Rs. - below analysts' expectations of 53.08 billion Rs.
The revenue growth was also lower than expected at 17.5% year-on-year, compared to 18.1% in the previous quarter.
Competition
It faces stiff competition from TCS, Wipro, HCL and Accenture in the digital transformation space - key growth driver for the IT industry.
It also lost some market share in its core banking & financial services segment, which accounts for over 30% of its revenue.
Tough Overseas Market
It is facing some challenges in its overseas markets, especially in Europe and North America, which contribute 80% of its revenue.
Infosys has also faced some client-specific issues, such as delays in project ramp-ups and contract renewals in the past.
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