Shares of Infosys on Tuesday fell up to 2.5 per cent to the day’s low at Rs 1,522.50 on BSE after a global company terminated the MOU for a $1.5 billion deal with the IT giant. According to an exchange filing on December 22, the global company has elected to terminate the Memorandum of Understanding with Infosys, and the parties will not be pursuing the Master Agreement. According to the filing, Infosys was supposed to provide enhanced digital experiences, along with modernisation and business operations services, leveraging Infosys platforms & AI solutions. The total client target spend over 15 years was estimated at $1.5 billion. Infosys had announced that it was signing the MoU in September 2023.
Shares of Infosys, which will announce its December quarter results on January 11, are flat on a year-to-date basis.
In Q2FY24, Infosys reported a 3 percent year-on-year (YoY) rise in net profit to Rs 6,212 crore. Consolidated revenue for the quarter was Rs 38,994 crore up by around 7 per cent from the previous fiscal. The operating margin for the same period was up by 40 bps to 21.2 per cent.
Over the last six months, shares of Infosys have gained over 22.85 per cent, and over 137 per cent in the last 5 years. On a YTD basis, the stock has gained only 2.4 per cent. Over the last few weeks, IT stocks have seen an uptick on the back of increased FII inflows and the Fed chairman’s dovish stance on rate cuts in the coming year.
Comments
0 comment