Infosys, India’s second-biggest software services exporter, on Tuesday reported a better-than- expected 3.3 per cent rise in the second quarter net profit to Rs 3,726 crore but slashed annual revenue forecast. The first quarterly results since Vishal Sikka quit as chief executive in August following public spat with co- founders led by NR Narayana Murthy, also saw Infosys, under its new chairman Nandan Nilekani, giving a clean chit to $200 million Panaya acquisition done under previous management.
The company said it agreed with previous findings of an external probe that there was no merit in the allegations of wrongdoing with regard to the deal. Infosys said in a statement that its net profit rose to Rs 3,726 crore in the July-September quarter of the current fiscal, from Rs 3,606 crore a year earlier. It cut revenue growth forecast to 5.5-6.5 per cent for the year to March 31, 2018, from 6.5-8.5 per cent previously projected. \
Revenue from operations rose 1.5 per cent to Rs 17,567 crore during the second quarter ended September 30, 2017-18. In dollar terms, net profit stood at $578 million for the September quarter, 7.3 per cent higher a year ago. The revenue at $2.7 billion came in 5.4 per cent higher year-on-year. The company has declared an interim dividend of Rs 13 per share.
Infosys also said it did not find anything wrong in the disclosures made on severance package paid to ex-CFO Rajiv Bansal, which along with allegations of wrong doing in Panaya acquisition were a cornerstone of Murthy’s offensive against Sikka.
“After careful consideration led by our Chairman, the Board reaffirms the previous findings of external investigations that there is no merit to the allegations of wrongdoing,’ the Infosys statement said. After Sikka’s exit, Nilekani, a co-founder and a former CEO, was named its chairman in a bid to stabilise the embattled tech giant.
Offering a detailed outline of Panaya deal review, Nilekani said, “In light of my review of these matters, I am fully persuaded, as is the entire Board, that the conclusions of the independent investigations are correct.” Infosys founder NR Narayana Murthy had demanded that the full report by Gibson, Dunn and Crutcher on whistleblower allegations pertaining to the Panaya deal, be made public.