India's Infosys shares fall on US probe worries

Apr 23, 2012

Shares in Infosys, India's second-largest outsourcing firm, fell four percent in Mumbai on Monday after the firm revealed that US authorities were probing alleged irregularities in its business visas.

The Nasdaq-listed company said it could not estimate the amount of money it might have to pay if the US probe upholds allegations of visa misuse but warned it could "adversely affect our business and results of operations."

The US Department of Homeland Security has found a "significant percentage" of errors in the company's verifications of US work visa applications, Infosys said in a US regulatory filing last week.

Infosys and some of its employees had already been facing allegations of misuse of business visas in Texas.

Infosys denies accusations of abusing the US visa process.

But it said in its disclosure to the US market watchdog, the (SEC), that it could face "fines and penalties" if US authorities find the company at fault.

Infosys' announcement comes amid mounting US sentiment against shifting jobs to cheaper foreign locations as the US election campaign heats up.

US President has promised to "insource" jobs to reduce high unemployment.

"We cannot predict the final outcome of the review" by the , an Infosys spokesman said in an emailed statement to AFP on Monday.

Infosys shares closed down nearly four percent at 2,311.95 rupees following the disclosure.

Investor concern about accusations of visa misuse follows disappointment at Infosys's weaker-than-expected revenue growth outlook for this fiscal year in figures released earlier this month.

Explore further: Nokia turnaround since handset unit sale continues

add to favorites email to friend print save as pdf

Related Stories

India's Infosys in US business visa probe

May 25, 2011

Indian software giant Infosys Technologies on Wednesday said it will "co-operate fully" with a probe by US authorities into allegations it violated visa laws.

India's Infosys posts profit dip on slowdown

Apr 15, 2009

India's Infosys Technologies said Wednesday its consolidated net profit for the fiscal fourth-quarter rose 29 percent from a year earlier, but fell sequentially due to the global slowdown.

India's Infosys profit up 27% but shares tumble

Apr 13, 2012

Indian software exporter Infosys on Friday said its quarterly profit rose 27 percent, but disappointed the markets with a lower-than-expected growth forecast that saw its shares plunge.

India's Infosys quarterly profits disappoint

Jul 13, 2010

India's second-biggest software exporter Infosys announced Tuesday a surprise 2.4 percent fall in first quarter consolidated net profit but raised its revenue outlook for the full year.

Recommended for you

Nokia turnaround since handset unit sale continues

3 hours ago

Nokia appears to have turned around its fortunes after the sale of its ailing cellphone unit to Microsoft, reporting a third-quarter net profit of 747 million euros ($950 million), from a loss of 91 million euros a year earlier. ...

Yahoo CEO defends strategy in face of criticism

3 hours ago

Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.

Sk Hynix logs all-time high Q3 earnings

4 hours ago

SK Hynix, the world's second-largest memory chip maker, reported Thursday a record high quarterly net profit for the three months to September on strong sales and currency earnings.

User comments : 0