Infosys on Saturday said it has lost a $1.5-billion contract from an undisclosed global firm, in yet another indication of the weak demand environment in the industry with some clients holding back their existing projects.

On September 14, the country’s second largest IT services firm had announced that it has entered into a memorandum of understanding (MoU) with a global company to provide enhanced digital experiences, along with modernisation and business operations services, leveraging its platforms and AI solutions.

Infosys had disclosed that the total client target spend over 15 years is estimated at $1.5 billion and that the deal is subject to parties entering into a ‘master agreement’.

In a regulatory filing on Saturday, Infosys disclosed that “the global company has now elected to terminate the memorandum of understanding and the parties will not be pursuing the master agreement’’. It is not known if the unnamed firm is an existing or a new client of Infosys.

For Infosys, the development comes days after chief financial officer (CFO) Nilanjan Roy resigned. Following his resignation, the country’s second largest IT services announced the appointment of its current deputy CFO Jayesh Sanghrajka as the CFO and key managerial personnel (KMP).

The senior management churn has seen the resignations of Mohit Joshi, president, in March this year when he quit to join Tech Mahindra as its MD and CEO. Before that another president Ravi Kumar had left the company to join Cognizant.

Infosys had reported a 3.2 per cent growth in net profit for the second quarter ended September 30, 2022. The tepid environment marked by low discretionary spending where margins are higher saw the company moderating the revenue guidance for the full fiscal. It was for the second consecutive quarter in which the revenue guidance has been cut.

While the Bangalore-based company posted a net profit of Rs 6,212 crore against Rs 6,021 crore in the year-ago period, Infosys said it now expects a 1-2.5 per cent revenue growth in constant currency terms whereas in the preceding quarter, it had cut the guidance to 1-3.5 per cent from the earlier projection of 4-7 per cent.

However, the quarter had seen its large deal TCV (total contract value) standing at $7.7 billion, which is the highest ever.

At the same time, Infosys has been able to win some deals as well. Recently, it announced a five-year collaboration with LKQ Europe, one of the leading distributors of automotive aftermarket parts for cars, commercial vans, and industrial vehicles in Europe.

In August, it had expanded the collaboration with Liberty Global.

The parties entered into an initial 5-year agreement, with an option to extend to 8 years and beyond. Infosys will provide services to Liberty Global estimated at €1.5 billion over the initial 5-year term and at €2.3 billion if the contract is extended to 8 years.

Corporate India will announce their quarterly results for the period ended December 31 from the second or third week of January and Infosys like its peers is expected to post sedate numbers.