Big Plans Ahead: Infosys Inks Landmark $2 Billion AI Deal with Existing Client
Written by Sanjay Kumar
News Highlights
- Infosys experiences 2% share price growth following a multi-year agreement for AI and automation services with a strategic client.
- Infosys signs key collaborations with energy company BP and Nordic Bank Danske Bank to drive digital transformation initiatives.
- Infosys partners with Skillsoft to provide free access to a wide range of learning content, aiming to revamp education and enhance skills for learners in India.
Infosys
Information technology company
- Founders: N. R. Narayana Murthy, Nandan Nilekani, MORE
- Number of employees: 3,35,186 (30 June 2022)
- CEO: Salil Parekh (2 Jan 2018–)
- Founded: 2 July 1981, Pune
- Revenue: 1 lakh crore INR (2021)
- Headquarters: Bengaluru
The share price of Infosys rose by 2 percent to reach Rs 1,445.35 at 9.20 am (July 18). This increase was a result of the company’s announcement of a new multi-year agreement with one of its strategic clients, wherein Infosys would offer AI and automation-related services.
Infosys stated that it had entered into a framework agreement with the client to provide AI and automation-led development, modernization, and maintenance services. The estimated total expenditure by the client over a span of 5 years is USD 2 billion.
On July 20, 2023, around 3.45 p.m. Indian Standard Time (IST), Infosys is scheduled to announce its financial results for the first quarter ended June 30, 2023.
In May, Infosys secured a significant deal from BP, an energy company, becoming their primary partner for end-to-end application services.
Additionally, on June 26, the company signed a strategic collaboration with Danske Bank, a prominent Nordic Bank. This collaboration aims to accelerate the bank’s digital transformation initiatives with speed and scale.
Moreover, on June 27, Infosys signed a Memorandum of Understanding (MoU) with Skillsoft to revamp education and learning for individuals ranging from students in class 6 to lifelong learners in India. Through Infosys Springboard, learners will have free access to a diverse range of Skillsoft learning content designed to enhance their technology, leadership, business, and behavioral skills.
In terms of its share performance, Infosys reached a 52-week high of Rs 1,672.45 on December 1, 2022, and a 52-week low of Rs 1,215.45 on April 25, 2023. Currently, the stock is trading 13.58 percent below its 52-week high and 18.91 percent above its 52-week low.
| Quarterly financials | ||
| Mar-23 | ||
| (USD) | Mar-23 | Y/Y |
| Revenue | 455.5Cr | 6.43% |
| Net income | 74.4Cr | 1.06% |
| Diluted EPS | 0.18 | 0% |
| Net profit margin | 16.33% | 7.06% |
| Operating income | 95.8Cr | 4.13% |
| Net change in cash | 8Cr | 50% |
| Cash on hand | – | – |
| Cost of revenue | 319.6Cr | 7.18% |
