Infosys slumps ~2% on $1.5 billion global deal cancellation

26 Dec 2023 , 11:33 AM

Shares of Infosys declined 2% at the NSE start on December 26 after the firm announced on December 22 evening that it was terminating a Memorandum of Understanding (MoU) with an unidentified multinational corporation. On December 22, Infosys shares rose 1.75% to end at Rs 1,561. The statement came after the market closing hours. 

At around 11.20 AM, Infosys was trading 1.08% lower at Rs 1,545.95 per piece, against the previous closing price of Rs 1,562.90 on NSE.

According to a December 22 exchange filing, the worldwide corporation has chosen to cancel the Memorandum of Understanding with Infosys, and the parties will not pursue the Master Agreement.

According to the filing, Infosys was to deliver better digital experiences, as well as modernization and business operations services, using Infosys platforms and AI technologies. Over a 15-year period, the total customer target expenditure was expected to be $1.5 billion. Infosys has indicated that the MoU would be signed in September 2023.

Infosys reported a 3% year-on-year (YoY) increase in net profit to Rs 6,212 crore in Q2FY24. Consolidated revenue for the quarter was Rs 38,994 crore, a 7% increase over the previous year. Operating margin increased by 40 basis points to 21.2% during the same time.

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