Bengaluru: Technology solutions leader Infosys Ltd. has announced a framework agreement with its existing client to deliver AI and automation-driven development services, according to a disclosure filed by the company. In addition to this, the agreement includes modernization and maintenance services and will span a five-year period. The client is expected to spend approximately $2 billion during this period, as per Infosys. Further details regarding the agreement will be revealed upon the company's release of its quarterly results on Thursday, July 20.
For the quarter ended on March 31, 2023, Infosys had a total of 40 clients in the $100 million-plus category, surpassing the 38 clients it had in December 2022. ICICI Securities predicts that Infosys will report a 0.8 percent sequential growth in constant currency for the June quarter. The brokerage also anticipates a soft September quarter for the company due to the absence of any major deal ramps during this period.
ICICI Securities speculates that Infosys may revise its revenue growth guidance for the fiscal year 2024 to 4-6 percent from the current range of 4-7 percent. However, the brokerage notes an appealing risk-reward scenario for the company, with expected constant currency revenue growth rates of 12.8 percent and 12.4 percent for fiscal years 2025 and 2026, respectively.
Shares of Infosys have witnessed a 10 percent increase over the past month, significantly reducing the year-to- date losses. Although it remains the only Nifty IT constituent with negative returns, the losses have considerably narrowed compared to the lows of 2023.
