Infosys Slides After Global Client Terminates $1.5 bn Deal

Infosys stock was in focus on December 26. The stock was under pressure, trading in the red after the company decided to terminate MoU with a global company.

The global company elected to terminate the Memorandum of Understanding (MoU) with Infosys, and the parties will not be pursuing the Master Agreement, according to an exchange filing.

According to the filing, Infosys was supposed to leverage Infosys platforms and AI solutions to provide enhanced digital experiences, along with modernization and business operations services.

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The estimated total client spend target over 15 years was $1.5 billion. Infosys announced that it was signing the MoU in September 2023.

At 10:36 AM, Infosys stock was trading at Rs 1,547.45, down Rs 15.45 or 0.99 percent.

The IT major reported a 3 percent year-on-year rise in net profit to Rs 6,212 crore. Consolidated revenue for the quarter was up by 7 percent at Rs 38,994 crore in Q2 FY24.

The IT firm won deals worth $7.7 billion in the September quarter. It had also won a 5-year deal from auto parts distributor LKQ Europe. 

Infosys had recently signed a $1.64 billion deal with London-based Liberty Global for a five-year period. It had also inked a $2 billion deal with an existing client in July and a $454 million deal with Danske Bank.

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