InvestorQ : How does the deal pipeline of Infosys look for this year and what does that mean for the stock price?
Deepa Salunkhe made post

How does the deal pipeline of Infosys look for this year and what does that mean for the stock price?

Answer
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Juvina Maggie answered.
3 months ago


Infosys Ltd, has hinted to analysts that its deal pipeline is a lot healthier than before despite being in the midst of the Coronavirus pandemic. However, Infosys also added that the cost-cutting and cash conservation initiatives by clients led to delayed conversions. The number of opportunities in collaboration, cost take-outs and automation are increasing.

Infosys has a large deals team focused on engaging with clients to take on their entire IT landscape and facilitate the shift to digital. Here, the focus is to focus more on deepening the client relationship and improving the ROE per client. The suite offered includes cost savings in off-shoring, automation and analytics to enhance efficiency.

Infosys underlined that the demand from the BFSI sector has only impacted marginally. The reduced volume has been made up by the fiscal and monetary stimulus across key markets allowing BFSI companies to invest in tech spending. Infosys has, however, warned that rising delinquencies in next quarter could impose higher cost on financials and impact business.