Infosys Unveils Massive Deal Ahead of Q1 FY 2023-24 Earnings Report

Indian IT services giant Infosys has extended an existing deal with a client, valued at approximately $2 billion, for a duration of over 5 years. The company revealed that the deal involves providing digital transformation and AI-driven services, including development, modernization, and maintenance, to the client. However, the client's identity in this deal has not been disclosed.

INFOSYS TALKS ABOUT ITS MASSIVE DEAL

In the current fiscal year, Infosys has already secured two significant deals. The first one, worth $1.5 billion, is with British oil and gas company bp, while the second deal amounts to $454 million with Danske Bank. The recent deal extension comes just ahead of Infosys' Q1 FY 2023-24 earnings report. Analysts predict that the company's growth during this quarter might be subdued.

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Phillip Capital anticipates a 0.8% sequential growth in constant currency revenue for Q1 FY 2023-24, attributed to weaker performance in the previous quarter. Uncertainty in the demand from industries like BFSI, Telecom, Hitech, and Retail could result in a slow start for the fiscal year.

HSBC also suggests that the effects of certain sub-trends may spill over into Q1. Despite this, Infosys is expected to maintain its revenue growth guidance of 4-7% for FY24. Analysts believe that the Street may converge around 5% after Q1 results are published.