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Infosys drops after losing contract from RBS : Will impact Revenues in future

Infosys dropped 1.96% to Rs 1,042.45 at 10:00 IST on BSE after the company said it will scale down about 3,000 employees in India over next few months after UK based banking client changed divestment plan of standalone bank.

The announcement was made on Saturday, 13 August 2016.

Meanwhile, the BSE Sensex was up 26.71 points, or 0.09%, to 28,190.97.

On BSE, so far 1.01 lakh shares were traded in the counter, compared with an average volume of 2.63 lakh shares in the past one quarter. The stock hit a high of Rs 1,049.40 and a low of Rs 1,027.60 so far during the day. The stock hit a record high of Rs 1,278 on 3 June 2016. The stock hit a 52-week low of Rs 1,012.25 on 18 November 2015. The stock had underperformed the market over the past one month till 12 August 2016, falling 9.58% compared with 1.24% gains in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 12.14% as against Sensex’s 9.16% rise.

The large-cap company has an equity capital of Rs 1148.47 crore. Face value per share is Rs 5.

Infosys said that it will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months after The Royal Bank of Scotland’s recent decision that it will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), and instead will pursue other options for the divestment of this business. Infosys has been a W&G program technology partner for Consulting, Application Delivery and Testing services.

RBS is a key relationship for Infosys and the company looks forward to further strengthening its strategic partnership and working with them across other strategic and transformation programs, Infosys said in a statement.

As per reports, the decision of RBS will impact revenues of Infosys for the year ended 31 March 2017 (FY 2017) by about $40 million.

On a consolidated basis, Infosys’ net profit fell 4.5% to Rs 3436 crore on 1.4% growth in revenue to Rs 16,782 crore in Q1 June 2016 over Q4 March 2016. The results are as per International Financial Reporting Standards (IFRS).

Infosys is one of the leading information technology outsourcing services providers. The company provides business consulting, information technology and outsourcing services.

 

Source: business-standard.com

(This Story has been completely carried over from business-standard.com and NewsToday.Buzz has not edited the content)//

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