Infosys rises nearly 2% after signing deal with Liberty Global

IT behemoth Infosys shares surged as much as 1.82 per cent to hit an intraday high of Rs 1,419 on the back of a deal the company signed on Tuesday, August 15. Infosys and Liberty Global signed an initial five-year agreement of 1.5 billion Euros ($1.64 billion) to evolve and scale the communication firm's digital entertainment and connectivity platforms.

The companies also have an option to extend the partnership to eight years and beyond, the statement added.

Under the deal, both the companies will significantly expand the programme, with Infosys taking over build and operations of Liberty Global's Horizon Entertainment and connectivity platforms.

“By bringing the scale and breadth of Infosys, including cutting-edge technologies such as Infosys TopazTM AI offering, the expanded collaboration ensures continued operational excellence, a highly scalable development engine for new features and capabilities, and efficiencies for Liberty Global,” Infosys said in a statement.

The collaboration allows Liberty Global to realise run-rate savings in excess of 100 million Euro per annum, inclusive of other savings and technology investments, the company added.

Liberty Global is a telecommunications company with operations in six European countries. The company serves over 85 million connections in Europe and the UK. Liberty operates under brands such as Virgin Media-O2, VodafoneZiggo, Telenet, Sunrise, Virgin Media, and UPC.

Infosys Q1 financial performance 

The company’s profit plunged 3 per cent to Rs 5,945 crore against Rs 6,128 crore sequentially. However, its revenue soared 1.3 per cent to Rs 37,933 crore against Rs 37,441 crore in the previous quarter (Q4FY23).

Infosys’ dollar ($) revenue surged 1.4 per cent to $4,617 m against $4,554 million on a quarter-on-quarter basis.

The Bengaluru-based company’s earnings before interest, taxes (EBIT) rose marginally to Rs 7,891 crore against Rs 7,877 crore QoQ. While its EBIT margin plummeted 20 basis points to 20.8 per cent against 21 per cent sequentially.

The stock of Infosys was trading at Rs 1,417.45 a piece, up over 1.7 per cent, at 1:07 pm.