Infosys gains after securing IT contract in Saudi Arabia

Infosys rose 1.47% to Rs 1,046.20 on the BSE after the company said it has entered into a joint venture pact with Saudi Prerogative Company in the Kingdom of Saudi Arabia to conduct IT services for customers in the Kingdom of Saudi Arabia.

The announcement was made after market hours on Friday, 2 September 2016. The stock market was closed yesterday, 5 September 2016, on account of Ganesh Chaturthi.

On BSE, so far 5,726 shares were traded in the counter as against average daily volume of 3.03 lakh shares in the past one quarter. The stock hit a high of Rs 1,048.90 and a low of Rs 1,035 so far during the day. The stock had hit a record high of Rs 1,278 on 3 June 2016.

The stock had hit a 52-week low of Rs 1,009.20 on 22 August 2016. The stock had underperformed the market over the past one month till 2 September 2016, sliding 4.91% compared with Sensex's 1.97% rise. The scrip had also underperformed the market in past one quarter, declining 18.19% as against Sensex's 6.29% rise.

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

Infosys holds 70% while the rest 30% will he held by Saudi Prerogative Company (SPC) in the joint venture (JV). Infosys' 70% in this JV is at a cash investment of $312,671 (SAR 1,172,501) by the company in the equity share capital of the proposed JV company. The agreement is subject to the approval of Saudi Arabian General Investment Authority (SAGIA).

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).


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