Infosys to sell Panaya, Skava subsidiaries

Infosys CEO Salil Parekh. Infosys used to host an analyst day annually when it was run by its founders—a practice that got diluted when CEO Vishal Sikka took over in 2014

Infosys CEO Salil Parekh. Infosys used to host an analyst day annually when it was run by its founders—a practice that got diluted when CEO Vishal Sikka took over in 2014

Infosys, India's second-biggest outsourcer reported a net profit of Rs 3,690 crore on revenues of Rs 18,083 crore for the January-March quarter, meeting Street estimates.

The results were the first for a full quarter under chief executive Salil Parekh who joined Infosys in January with the task of restoring growth and ensuring peace between Infosys founders and the board after an acrimonious spat past year. It anticipated the sale to be completed by March next year and accordingly assets amounting to Rs.2060 crore and liabilities amounting to Rs.324 crore, in respect of the two companies, have been reclassified and presented as held for sale. In constant currency terms, Infosys managed a 5.8% growth, which was lower than industry body Nasscom's estimate of 7.8% growth past year. Parekh said the decision for sale of these subsidiaries was made based on the new strategic plan.

In response to a question, Chief Financial Officer MD Ranganath said the payout would not affect the acquisition strategy of the company.

Further, Infosys also has put its major focus on digital services under its new strategy.

In terms of volume, 2.95 lakh shares of Infosys changed hands on BSE, while 1.06 crore scrips were traded on NSE.

Total dividend paid in previous fiscal (2016-17) was Rs 25.75 (515 per cent) per share, including Rs 14.75 (295 per cent) final and Rs 11 (220 per cent) interim.

Referring to the Panaya acquisition, the whistleblower letter claimed that "board and the management led by Seshasayee and Ravi venkatesan had not only defended the acquisition but also gave a clean chit to the erstwhile CEO and publicly said that they had not found anything wrong with the acquisition".

Dividend pay-out includes Dividend Distribution Tax (DDT).

Infosys said it agreed to acquire WongDoody Holding Company, Inc., a US-based digital creative and consumer insights agency for a total consideration of up to $75 million including contingent consideration and retention payouts, subject to regulatory approvals and fulfillment of closing conditions.

A whistleblower has asked market regulators in India and the U.S. to question the Infosys decision to sell Panaya, asking it to fix accountability of the board that changed a "strategic acquisition to a completely value less" one.

Briefing newsmen here on the highlights of the year's performance the newly appointed CEO Salil Parekh told newsmen here on Friday that the healthy growth was a reflection of the strong impact that Infosys had with its clients and the dedication of the employees. "It's a fairly stable, good outlook for the market that we see today".

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