Infosys tumbles 3% as firm takes $40 mn revenue hit on cancellation of RBS contract

NEW DELHI: Shares of Infosys took a beating on Tuesday after the IT major informed BSE that Royal Bank of Scotland (RBS) has cancelled a major contract that will impact as many as 3,000 of its employees and impact revenues for the year by about $40 million.

In a filing to BSE, the company said the Royal Bank of Scotland would no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), and instead would pursue other options for the divestment of this business.

“Infosys has been a W&G program technology partner for consulting, application delivery and testing services, and subsequent to this decision, it will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months,” the company said.

Following the development, the stock fell 3.35 per cent to hit a low of Rs 1027.60 on BSE. The stock had hit a 52-week high of Rs 1,278 on June 3.