Infosys to return $2 bn to shareholders; rings in other changes

Infosys will return $2 billion cash to shareholders though the modality of the payout will be decided by the board, the company said recently. The decision may placate a group of founders and former executives who have publicly accused its board of governance lapses and had urged it to reward shareholders through a share buyback.

The Bengaluru-based company, Ravi Venkatesan, has appointed an independent director as co-chairman. Infosys has set an ambitious revenue target of $20 billion target by 2020. However, the $150 billion Indian software service sector has been hit by a wave of protectionism by the new US administration.

Infosys reported a marginal increase in consolidated net profit to 36.03 billion rupees ($559.5 million) in the three months to March 2018 , from 35.97 billion rupees in the year-ago quarter.

India’s second-largest software firm sees digital and agile digital services as the areas of growth and will make investments in these areas. It is planning to ramp up digital revenue from the current level of $2.8 billion .

Infosys also plans to spend more to automate its traditional services, reskill employees (put aside bonus pool of $10 million for employees) to be future ready and increase localisation in core markets like the US, UK, Australia.

The company is also seeking buyers for two firms — Skava (April 2015 for $120 mn) and the Panaya (February 2015 for $ 200 mn).

LEAVE A REPLY

Please enter your comment!
Please enter your name here