Published: Sat, April 14, 2018
Life&Culture | By Rose Hansen

Infosys net profit rises 2.4% to Rs 3690 crore in fourth quarter

Infosys net profit rises 2.4% to Rs 3690 crore in fourth quarter

Software major Infosys on Friday made a decision to sell off its subsidiaries Panaya and Skava, which includes Kallidus, by March 2019. Sequentially, however, net profit declined 28.1 per cent, primarily because Infosys had got an income tax reversal of Rs 1,432 crore from an advance pricing agreement signed with United States tax authorities in the preceding quarter, inflating the base.

"On reclassification, an impairment loss of Rs 118 crore ($18 million) in Panaya has been recognised in the consolidated profit and loss for the fourth quarter and fiscal year 2017-18", it said in the statement.

INKED DIGITAL DEALS WORTH OVER $3 BILLION The company will rely on artificial intelligence and automation to win digital deals, reskill employees and hire more locals in markets such as US, Europe, and Australia.

Infosys expects revenue for the 2018-19 fiscal to grow in the range of 6-8 percent in constant currency terms and 7-9 percent in United States dollar terms. The company expects the sale to be completed by March 2019.

"Infosys' FY19 revenue guidance is in line with our expectations, while margin guidance disappoints a little bit considering its additional investments in digital and setting up onsite delivery centres", Sanjeev Hota, AVP - Research, Sharekhan by BNP Paribas said in a note. The profit for the March quarter was lower compared to the previous quarter (October-December), during which profit was boosted by reversal of an income tax provision of Rs 1,432 crore.

The Infosys board also appointed Kiran Mazumdar-Shaw, independent director as the Lead Independent Director of the Board.

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"Within that strategic review, we chose to initiate active interest from external buyers (for Skava and Panaya) as they did not fit all of the criteria", Parekh said.

Infosys CEO Salil Parekh is definitively moving away from a path that predecessor Vishal Sikka charted.

A focus on agile digital, reskilling employees, scaling up Infosys' core businesses and building greater localisation in the markets Infosys operates, are at the centre of the strategy laid down by Parekh. MD Ranganath, chief financial officer at Infosys, was more candid in saying that both firms did not "fully align" with its future strategy.

BENGALURU: Software major Infosys on Friday said it is buying US-based consumer insights agency Wongdoody Holding for $75 million (Rs 489 crore). "Navigating Your Next" is our aspiration of how we will partner with each one of our clients." said, CEO. Operating margins stood at 24.3%.

The IT firm said it would stick to its policy of returning up to 70 per cent of its free cash, adding that it had identified up to Rs 13,000 crore which would be paid to shareholders including a special dividend payout worth Rs 2,600 crore.

A Bloomberg survey of 26 analysts had forecast Infosys to report revenue of $2.79 billion, or Rs18,116 crore, in the quarter.

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