Amid slowdown forecast, Infosys wins $2 bn AI, automation deal expansion
market capitalization, late on Monday said that it has signed a mega deal with one of its existing clients. In an exchange filing, the company said that the deal to provide artificial intelligence (AI) and automation development, modernization and maintenance services is valued at $2 billion, and will be spread over the next five years. Details of the client were not disclosed.
Infosys declined to comment on an email query sent by Mint. The company is set to announce its fiscal first quarter financial results on 20 July. Infosys’ deal win comes against the backdrop of weakness and uncertainty in India’s $245-billion IT services industry. On 13 April, Infosys chief executive Salil Parekh guided for 4-7% annual revenue growth rate, largely underwhelming market expectations, projected on macroeconomic headwinds leading to a slowdown in tech spending around the world.
A 29 June investor note from brokerage firm ICICI Securities projected Infosys to report 0.8% sequential revenue growth for the June quarter. Interestingly, Sumeet Jain, research analyst at ICICI Securities, in the note, had said that even the September quarter is likely to remain “relatively soft" for Infosys, “given no mega-deal ramp-ups in Q2." Infosys’ $2-billion deal win is likely to add to its mega deal portfolio for the September quarter. Prior to the disclosure of this deal, Jain’s note to investors said, “We believe that Infosys could narrow its revenue growth guidance to 4-6% in constant currency (CC) terms for FY24, (down) from 4-7%.
Read more on livemint.com
