Infosys rose 0.25% to Rs 3,398 at 9:24 IST on BSE after the company said it won a multi-year application development services contract from Volvo Car Corporation.
The company made the announcement on Monday, 17 March 2014.
Meanwhile, the BSE Sensex was up 156.22 points, or 0.72%, to 21,966.02.
On BSE, so far 5,038 shares were traded in the counter, compared with an average volume of 86,000 shares in the past two weeks.
The stock hit a high of Rs 3,407.45 and a low of Rs 3,385.95 so far during the day. The stock hit a record high of Rs 3,847.20 on 3 March 2014. The stock hit a 52-week low of Rs 2,190 on 29 April 2013.
Infosys said it has been selected by Volvo Cars as a strategic supplier to provide application development services for its global operations. This agreement builds on the long-standing relationship as Infosys has been supporting Volvo Cars since 2010 to rationalize and integrate its enterprise systems.
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As part of the new agreement, Infosys will bring its proven global service delivery experience and ability to drive innovation and transformation - efficiently and effectively Develop applications to support multiple domains, including marketing and sales, customer service, manufacturing, product development, and corporate functions Deploy best practices specifically related to business process harmonization and delivery excellence, across transformation projects, the company said in a statement.
Nitesh Bansal, Vice President Manufacturing Europe, Infosys: "We will be a strategic supplier for Volvo Cars to deliver excellence and innovation to transform their IT landscape to a modern architecture. We are very pleased to collaborate with Volvo Cars in their strategic journey. We have an industry heritage, deep automotive expertise, and established track record of delivering that leaves us well positioned to be a strategic supplier to Volvo Cars. This agreement also reflects our strategic focus on the Nordic market and strengthens our presence in Sweden."
Meanwhile, in a separate announcement, Infosys said that the US District of Columbia has extended its contract with Infosys Public Services, a US based subsidiary of Infosys. Earlier, the District signed a $49.5 million agreement with Infosys Public Services in January 2013 to develop its Health Insurance Marketplace, the DC Health Link. One of the first state-based marketplaces to be operational on schedule on 1 October 2013, DC Health Link offers health insurance options to over half a million residents and small businesses.
Under the new agreement, Infosys Public Services will modernize the legacy eligibility system and additional federal and local health and social programs for the US District of Columbia. Infosys Public Services will leverage the foundational capabilities developed in 2013 to enable the District's agencies to collaborate with their constituents to achieve sustainable health and social benefit outcomes.
Eric Paternoster, President & Chief Executive Officer, Infosys Public Services, Inc. "The District is a leader in implementing the new healthcare insurance mandates and insurance marketplace. We're excited to continue our partnership with the District on this important healthcare program."
On Wednesday, 12 March 2014, Infosys' CEO and Managing Director S.D. Shibulal's commented that the company's sales growth for the current fiscal year may be near the lower end of its forecast as some of its clients are tightening spending on technology. Shibulal said that the company's revenue growth in the fiscal year that begins in April may also be slow if business momentum remains weak. Infosys' clients in the retail and manufacturing sectors are facing spending pressure, he said. Many of the factors that have led to the recent slowdown will continue to impact client spending at least in the initial part of fiscal year 2015, Shibulal said.
It may be recalled that Infosys had at the time of the announcement of Q3 December 2013 results on 10 January 2014 raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 (FY 2014). At that time, the company forecast 11.5% to 12% growth in revenue in dollar terms for FY 2014. At that time, the company had forecast 24.4% to 24.9% in revenue in rupee terms for FY 2014 based on rupee dollar conversion rate of 61.81 for the rest of the financial year.
Infosys' consolidated net profit jumped 19.4% to Rs 2875 crore on 0.5% increase in revenue to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS). Operating profit rose 14% to Rs 3620 crore in Q3 December 2013 over Q2 September 2013 on back of expansion in operating profit margin (OPM) by a sharp 330 basis points QoQ at 27.8% in Q3 December 2013. The OPM expanded by 170 basis points QoQ, excluding one-off visa cost of Rs 219 crore in Q2 September 2013.
Infosys is a global leader in consulting, technology and outsourcing solutions.
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