India’s second-largest IT company Infosys has signed a deal with the world’s largest oil producer Aramco to use artificial intelligence and automation tools to build its HR technology. Its shares closed at ₹ 1227.00 apiece on Tuesday.
Infosys plans to embed digital transformation practices across Aramco’ HR platform to enhance the overall experience of employees to engage more productively. Its platform for Aramco will try to optimise repetitive tasks related to HR management, reducing time and effort spent training employees. Moreover, it will use algorithmic decision-making to spot trends and identify relevant recruitment channels.
“At Aramco, we are constantly looking to improve employee experience and make our company the best place to work. This collaboration will allow us to explore ways to further upgrade our focus on customer-centricity and transform our digital HR offerings,” said Faisal A. Al-Hajji, SVP Human Resources, Aramco.
In another development, infosys launched a live operations platform in collaboration with service now to boost customer experience for telecom providers.
Infosys reported an 8.8% year-on-year (YoY) growth in constant currency terms and a 3.2% decline in revenue on a quarter on quarter (QoQ) basis. It signed 17 large deals with a total contract value of US $ 2.1 billion, down 36.4% QoQ.
ICICI Direct has maintained a buy call on the shares of Infosys with a target price of ₹ 1600.00. This translates to an upside of 30.40% as compared to the current share price. It considered differentiated digital and cloud capabilities to drive growth. The brokerage expects that infosys might deliver post rupee revenue growth of 10.3% CAGR in FY23-25E.
Infosys is a global leader in next-generation digital services and consulting, with over forty years of experience in managing systems and workings of global enterprises.
With a market capitalization of ₹ 5,07,245 crores, it is a large-cap blue chip company. It has an excellent return on equity of 31.97% and an ideal debt to equity ratio of 0.11. Its shares were trading at a price to earnings (P/E) ratio of 21.30 which is lower than the industry P/E of 28.51. Moreover, it has a high dividend yield of 2.77%.
Written by Simran Bafna
