While the earnings by itself is important, we bring to you five key takeaways from Infosys board meeting held on October 23-24.
India’s second largest software service provider Infosys posted a 3% year on year increase in net profit to Rs 3,726 crore in the July-September quarter, compared to Rs 3,606 crore in the corresponding quarter last year. The event assume significance as it’s the first quarterly earnings reported by the IT behemoth after the controversial exit of Vishal Sikka in August this year. While the earnings by itself is important, we bring to you five key takeaways from the company’s board meeting held yesterday.
Rise in Gross Client Additions
The company’s gross client additions came in at 72 in the September quarter, as compared to 59 in the previous quarter. The resignation of Vishal Sikka and appointment of Nilekani had rung in certain uncertainty among the clients on the future direction of Infosys. However, UB Pravin Rao had said that the current strategy will be continue and there no plans for any massive overhaul except for a few minor changes with the key focus being on execution.
Attrition rises marginally
In the September quarter, annualized standalone employee attrition increased marginally to 17.2% compared to June quarter annualised standalone employee attrition of 16.9 percent. September quarter’s annualized consolidated employee attrition stood at 21.4 percent compared to 21% in the June quarter. The IT major’s attrition rate has increased on a YoY basis, as in FY17, a total of 37,915 people left the company, which is higher in comparison to the previous year of 34,688 in FY16.
CEO search progressing well
Infosys says that the process of identifying the next CEO and shareholder consultation outreach have been initiated and are progressing well. Finding the right leader is one among the top priorities of Nandan Nilekani. In August this year, Nandan Nilekani said, “We are very confident on the search, we have a large pool of internal and external candidates.” The company has planned a global hunt to recruit the candidate with the right skill sets.
Company says no wrongdoing in Panaya deal
In an exchange filing, Infosys said that the board reaffirms the previous findings of external investigations that there is no merit to the allegations of wrongdoing in the Panaya deal. Vishal Sikka had resigned on August 18 following series of allegations by co-founder Narayana Murthy, mainly over Rs 1,250 crore acquisition of Israel based IT firm Panaya after an anonymous whistleblower alleged wrong-doings in the deal. Earlier, an independent investigation had found no substance in whistleblower allegations of Infosys CEO Vishal Sikka being paid excessive compensation in relation to the deal.
Relationship with Narayana Murthy
The company said that it will “endeavour to build a trusting relationship with Mr. Murthy.” Narayana Murthy had earlier raised concerns over falling standards of corporate governance in the company. Vishal Sikka had blamed a continuous stream of “false, baseless, malicious and increasingly personal attacks” that were “amplified by the very people from whom we all expected the most steadfast support,” in a notice to the Infosys board earlier in August this year.