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Infosys Technologies Chief Executive Officer S.D. Shibulal speaks after announcing the company’s quarterly financial results at its headquarters in Bangalore, India, Friday, April 12, 2013. Indian outsourcing giant Infosys reported lower quarterly profit and forecast subdued revenue growth on Friday, sending its shares down 21 percent. Net profit for the January-March quarter fell 4.1 percent from a year earlier to $444 million, the company said.
Infosys Technologies Chief Executive Officer S.D. Shibulal speaks after announcing the company’s quarterly financial results at its headquarters in Bangalore, India, Friday, April 12, 2013. Indian outsourcing giant Infosys reported lower quarterly profit and forecast subdued revenue growth on Friday, sending its shares down 21 percent. Net profit for the January-March quarter fell 4.1 percent from a year earlier to $444 million, the company said.
(Kashif Masood/AP)

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Infosys battered by volatile markets – and margins

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Pity those investors who have given Infosys the benefit of the doubt over the last couple of years. Shares in India’s second-largest IT outsourcer fell by the most in 10 years on Friday. The one-fifth fall came after the company announced that it had missed its revenue guidance for its end-March full year. It followed that up with a weak and vague guidance for this year. The hope was that some of the recovery seen in the outsourcer’s third-quarter would continue. But earnings before interest, tax, depreciation and amortisation fell 5 per cent year-on-year in the past three months.