Shares of Infosys Ltd, India’s second-largest IT services provider, fell 3.4% on Tuesday, nearing a six-year low after dropping more than 35% over the past 12 months, according to livemint.com. At its 45th annual general meeting, at least half of the 22 shareholders present questioned the management about the declining share price and the impact of automation tools on the company’s future.
During the AGM, shareholder Om Prakash Kejriwal from Kolkata challenged the management, stating that the share price decline was due to insufficient investment in future technologies, which he said was causing foreign investors to offload shares. Despite the management highlighting opportunities presented by AI and automation, shareholders expressed concerns about the company’s preparedness to capitalize on these technologies, as reported by livemint.com.
The decline in Infosys’ stock price reflects broader market concerns about IT companies’ ability to adapt to rapid technological changes, especially in AI and automation. Infosys’ situation contrasts with some peers that have seen gains by aggressively investing in AI capabilities. The scrutiny from shareholders underscores the pressure on traditional IT service providers to innovate and maintain investor confidence amid evolving industry dynamics, according to livemint.com.
Infosys’ next quarterly earnings report, due in late July, will be closely watched by investors for signs of strategic shifts or increased AI investments that could stabilize or reverse the share price trend, livemint.com noted.