The U.S.-listed shares of Infosys Ltd. INFY tumbled 9.1% toward a 2 1/2-year low, after the India-based digital services and consulting company reported fiscal fourth-quarter profit and revenue that missed expectations. The stock was on track to suffer the biggest one-day selloff since it dropped 12.1% on March 16, 2020. Net income for the quarter to March 31 was $744 million, or 18 cents a share, compared with $753 million, or 18 cents a share, in the year-ago quarter. The FactSet consensus for earnings per share was 19 cents. Revenue rose 6.4% to $4.55 billion, but below the FactSet consensus of $4.73 billion. Gross margin contracted to 30.5% from 31.0%, as cost of sales rose more than revenue, up 7.1%. The company said the total dividend paid in fiscal 2023 per U.S.-listed share will be 41 cents, up 9.7% from a year ago. The stock, which was headed for the lowest close since Dec. 10, 2020, has dropped 13.9% year to date, while the iShares MSCI India exchange-traded fund INDA has slipped 3.5% and the S&P 500 SPX has gained 7.2%.
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