MUMBAI (Reuters) - Shares in India’s Infosys Ltd fell as much as 9 percent on concerns about the revenue outlook after Barclays cited the software service exporter’s chief executive SD Shibulal as saying the company was facing challenges in some customer segments.
Barclays, in an email to clients, said Infosys (INFY.NS) management, highlighted improving customer optimism, but added Shibulal had also “highlighted the challenges faced by the company in retail and Hi-Tech vertical.”
“We believe that if the challenges outplay positives, the company is likely to gravitate towards lower end of FY14 guidance, implying muted Q4FY14,” Barclays said in its email.
Infosys, India’s second largest software services exporter, in January raised revenue growth guidance for the 2013/14 financial year to between 11.5 and 12 percent from a previously forecast 9-10 percent, citing higher demand for its services.
Infosys shares were down 7.4 percent at 0351 GMT.
Reporting by Abhishek Vishnoi and Indu Lal; Editing by Rafael Nam