“The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement,” Infosys said in an exchange filing.
Without disclosing the name of its client, the Bengaluru-headquartered software services exporter had announced in September that it has signed an MoU with a global company to provide enhanced digital experiences, along with modernization and business operations services, leveraging Infosys platforms & AI solutions.
The total client target spend over 15 years was estimated at $1.5 billion and was subject to parties entering into a master agreement.
Shares of Infosys, which will announce its December quarter results on January 11, are flat on a year-to-date basis.
In the second quarter, the Bengaluru-based company had reported a 3% growth in consolidated net profit at Rs 6,212 crore. Consolidated revenue grew nearly 7% YoY to Rs 38,994 crore.
The software major has tweaked its guidance for FY24 in the September quarter. It now sees revenue growing 1-2.5% in constant currency terms in FY24, compared to its earlier estimate of 1-3.5%.While reducing the upper end of its revenue growth guidance, the company has retained its operating margin target of 20-22%. Last quarter, it had announced large TCV deals worth $7.7 billion.
Infosys had recently appointed Jayesh Sanghrajka as the new CFO following resignation of the incumbent Nilanjan Roy. Roy said he is quitting due to personal reasons for exploring external growth opportunities.
Morgan Stanley maintained an overweight stance on Infosys with a target price of Rs 1600.
“The resignation by CFO was unanticipated and could weigh on sentiment for the stock in light of past senior exits. We expect the transition to be a smooth one, given the role has been filled by an internal candidate,” it said.
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