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Infosys drops after losing contract from RBS

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Capital Market
Last Updated : Aug 18 2016 | 12:01 AM IST

Infosys dropped 1.96% to Rs 1,042.45 at 10:00 IST on BSE after the company lost a contract from Royal Bank of Scotland as Royal Bank of Scotland decided not to pursue its plan to separate and list a new UK standalone bank, Williams & Glyn.

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 the 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.

Subsequent to the decision by Royal Bank of Scotland (RBS) not to pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), Infosys will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months. Infosys was a W&G program technology partner for consulting, application delivery and testing services.

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

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

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On a consolidated basis, Infosys' net profit fell 4.5% to Rs 3436 crore on 1.4% growth in revenue to Rs 16782 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.

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First Published: Aug 16 2016 | 10:03 AM IST

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