Not averse to buyback option; difficult to say if 2017 will be a better year than 2016: Infosys COO UB Pravin Rao

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Published: February 16, 2017 2:27:08 PM

UB Pravin Rao, COO, Infosys on Thursday said that the IT major will look at all options including buybacks at an appropriate time.

Further talking about the company, Rao said that it will be difficult to say if 2017 will be a better year than 2016. "Margin is going to be in narrow range of 24-26%," he said.Further talking about the company, Rao said that it will be difficult to say if 2017 will be a better year than 2016. “Margin is going to be in narrow range of 24-26%,” he said.

UB Pravin Rao, COO, Infosys on Thursday said that the IT major will look at all options including buybacks at an appropriate time. “We are not averse to the buyback option. The Board will decide on timeline of buyback and cap allocation policy,” he said speaking with CNBC TV18. Further talking about the company, Rao said that it will be difficult to say if 2017 will be a better year than 2016. “Margin is going to be in narrow range of 24-26%,” he said.

Infosys Ltd, last month, said that the downward steady pricing pressure upon the Indian IT industry and on the company is here to stay going into the fourth quarter of the current financial year 2016-17. “One significant thing we saw in this quarter (Oct-Dec) was the continued pricing pressure,” Infosys CEO and MD Vishal Sikka said. Infosys’ ‘revenue productivity per employee (RPP)’ in the Oct-Dec quarter fell 1.1% on-quarter and 3.3% on-year. Further, for the nine months to December, RPP fell 1.7%, Sikka said, adding that this clearly shows the pricing pressure is here to stay “as I have been saying for the last two-and-a-half years.”

Meanwhile, R Seshasayee addressed the first news conference, since the news of the rift between the founders and the board broke, quelling all the concerns about the CEO Vishal Sikka’s pay recently. Sikka on Tuesday said that “I am a Kshatriya warrior and I am here to stay and fight.” He further said, “I see tremendous amount of change in IT due to automation, digitisation in the next 3-5 years”.

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Speaking about the severance pay to Rajiv Bansal, Sikka said, “I will certainly not pay such severance pay to anyone again in future.” “I deeply value suggestions from founders, promoters and shareholders,” he added. ‘Judgement’ on Bansal’s severance pay could have been different, Infosys’ non-executive Chairman R Seshasayee said at a press conference. Seshasayee further disclosed that out of the agreed Rs 17.38 crore, the company decided to pay Bansal only Rs 5 crore later, with the remaining amount being withheld pending clarifications on the terms of the severance contract.

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