Infosys extends decline after losing a contract from RBS

Infosys lost 1.21% to Rs 1,038.25 at 13:51 IST on BSE, with the stock extending previous trading session's decline triggered by the company's announcement that it had lost a contract from Royal Bank of Scotland.

Meanwhile, the S&P BSE Sensex was down 63.79 points or 0.23% at 28,000.82.

On BSE, so far 1.39 lakh shares were traded in the counter as against average daily volume of 2.69 lakh shares in the past one quarter. The stock hit a high of Rs 1,051.90 and a low of Rs 1,035.30 so far during the day. The stock had hit a 52-week low of Rs 1,012.25 on 18 November 2015. The stock had hit a record high of Rs 1,278 on 3 June 2016. The stock had underperformed the market over the past one month till 16 August 2016, sliding 1.99% compared with 0.82% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 13.43% as against Sensex's 9.4% rise.

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

Shares of Infosys have declined 2.35% in two trading sessions from its close of Rs 1,063.30 on 12 August 2016 after the company announced before market hours yesterday, 16 August 2016, about losing a contract from Royal Bank of Scotland (RBS) as RBS decided not to pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). The stock had fallen 1.16% to settle at Rs 1,050.95 yesterday, 16 August 2016, after the announcement. Subsequent to this decision by RBS, Infosys will carry out an orderly ramp-down of about 3,000 employees, primarily in India, over the next few months. Infosys was a W&G program technology partner for consulting, application delivery and testing services.

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.

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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