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Infosys stock falls 2% on $1.5 billion global deal termination
Infosys had announced that it was signing the MoU in September 2023. Shares of Infosys fell 2 percent at open on the NSE on December 26 after its announcement to terminate a Memorandum of Understanding (MoU) with an unnamed global company on December 22 evening. Shares of Infosys were in the green on December 22, rising 1.75 percent to close at Rs 1,561. The announcement came post-market close. At 9:20 am on December 26, the stock was trading at Rs 1,534.70. 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. 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 percent from the previous fiscal. Operating margin for the same period was up by 40 bps to 21.2 percent. Over the last six months, shares of Infosys have gained over 22.85 percent, and over 137 percent in the last 5 years. On a YTD basis, the stock has gained only 2.4 percent. 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. Source - Money Control
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