India's Infosys's Q4 profit rises 2.4 pct


Software major Infosys on Friday chose to sell off its subsidiaries Panaya and Skava, which includes Kallidus, by March 2019.

He added that the company will execute its strategy around the four pillars - scaling digital business (USD 2.79 billion in revenue currently), energizing client's core technology landscape via AI and automation, re-skilling employees, and expanding localisation in markets like US, Europe, and Australia. The IT giant had reported a net profit of Rs 5,129 crore for the quarter 3, ended December 31, 2017.

Software major Infosys Ltd on Friday reported 28.1 per cent sequential decline in consolidated net profit, in rupee terms, to Rs 3,690 crore for the fourth quarter of 2017-18.

"The acquisition fits into the digital scale up for us".

"Our operating margins during the quarter and fiscal 2018 were resilient due to unwavering focus on productivity and operational efficiency, leading to a robust cash generation". The forecast for full-year revenue growth was slightly below brokerage firm Macquarie's 6.5 to 8.5 per cent forecast. Employee utilization remained healthy, " said Pravin Rao, COO. The company anticipates completion of the sale by March 2019. "It is neither spectacular nor dismal, yet the optimism looming in the background with new leadership bringing in a refreshed strategy focused more strongly on the marketplace rather than internal issues can be sensed in investor sentiment", said Sanjoy Sen, Doctoral research scholar, Aston Business School, UK.

Later in October, the Infosys board - under its new chairman Nandan Nilekani - gave a clean chit to the controversial Panaya acquisition, saying there was no merit in the allegations of wrongdoing.

Sikka eventually resigned last August fed up with what he called the "constant drumbeat" of accusations that had taken "the excitement and passion of this journey (as Infosys CEO)".

The company was also under fire from its founders previous year over the Panaya deal, when the latter had questioned corporate governance practices related to the deal.

Accordingly, the company has reclassified the combined assets of Rs 2,060 crore ($316 million) and liabilities of Rs 324 crore ($50 million) of the two subsidiaries and presented as held for sale.

In response to a question, Chief Financial Officer MD Ranganath said the payout would not affect the acquisition strategy of the company. "Navigating Your Next" is our aspiration of how we will partner with each one of our clients." said CEO Salil Parekh.

The company has made a decision to return up to 70 percent of its free cash flow to shareholders every year in a manner decided by the board, Chief Financial Officer M D Ranganath said, adding that the company was giving $400 million to investors as special dividend immediately.

Infosys Jan-Mar quarter consolidated net profit grows 2.4% to Rs 3,690 cr; revenue up 5.6%.