Shares of this IT giant fell around 2 percent after losing a 1.5 billion dollar AI contract from a global customer. The shares have delivered more than 20 percent returns to their shareholders in six months.
With a market capitalization of Rs. 6,39,229 crores, the shares of Infosys Ltd started Monday’s trading session on a flatter note at Rs. 1,535 compared to its previous close of Rs. 1,562. The shares hit a low of Rs. 1,523, making a loss of 2 percent and currently trading at Rs. 1,542.
According to reports, the global company, which had previously signed a 1.5 billion dollar deal focused on AI solutions, had decided to terminate the Memorandum of Understanding (MoU) with the IT services giant. This was intended to be a 15-year deal, which was signed in September 2023, for increasing uncertainty in the demand and technology budgets of IT services customers.
The company in an exchange filing stated that “The global company has now elected to terminate the Memorandum of Understanding (MOU) and the parties will not be pursuing the Master Agreement.” No further reason was given for the termination and neither was the name of the global company disclosed.
Coming onto the company’s financial statements, the revenue increased marginally by around 3 percent from Rs. 37,933 crores in the June quarter to Rs. 38,994 crores during the September quarter. In addition, the net profit increased by 5 percent from Rs. 5,945 crores to Rs. 6,215 crores during the same period.
According to the annual report published by the company they receive revenue from across the world, primarily from North America which contributes 62 percent of revenue, 25 percent of revenue comes from Europe, 3 percent from India and the remaining 10 percent of revenue is contributed from the rest of the world.
As of the second quarter ended, the company had reported its highest ever large deals TCV of 7.7 billion dollars. Furthermore, other mega deals include a 2-billion-dollar contract with an existing customer to provide AI and automation-led development and maintenance services over five years and a $1.5-billion deal with Liberty Global over five years and later this week, Infosys also reported a 5-year deal from LKQ Europe.
Headquartered in Bengaluru, Infosys was incorporated in 1981 and is the 2nd largest IT company in India. They provide technology, consulting, outsourcing and next-generation digital services to enable clients to execute strategies for their digital transformation.
Written By Vaibhav Patil
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