Shares of Infosys fell over 1% on Tuesday after an announcement over the weekend about a global firm terminating an AI-related agreement with the company, which had a revenue potential of $1.5 billion. The stock ended 1.12% down on the BSE at `1,544.50.Shares of another IT major Wipro also came under pressure during the day on speculation that former L&T Infotech CEO Sanjay Jalona will be joining the company in a senior role. However, with both Wipro and Jalona denying any such development, the stock finally closed 1.59% up on the BSE at Rs 470.05.
The markets reacted to the buzz relating to Jalona joining Wipro as incumbent CEO Thierry Delaporte has been under pressure for middling growth, falling margins and several top-level exits. Delaporte’s term officially ends in 2025.The overall sentiment in theIT sector has been muted after Accenture reported tepid first-quarter earnings as well as outlook last week.On Tuesday, the BSE IT index closed 0.52% down, when the Sensex closed up 0.32%.
40 bps to 21.2%. Shares of Infosys have gained over 22.85% over the last six months and over 137% in the last five years. On a year-to-date basis, the stock has gained only 2.4%. Wipro’s revenue growth in constant currency on a year-on-year basis has fallen steeply since Q4FY22. Margins are among the lowest when compared with its peers.
Besides these challenges, the company has also faced severaltop-level exits in the last one-and-a-half years, the latest being chief financial officer Jatin Dalal and chief growth officer Stephanie Trautman. With the company continuing to struggle versus its peers, speculation is rife whether Delaporte would get a second term once his five-year term ends in July 2025.
