Infosys, India's second-largest software exporter, on Friday announced that its net profit for the fourth quarter rose 2.4 per cent to ₹ 3,690 crore compared with the same period last year and forecast revenue to grow between 6-8 per cent in constant currency in the current financial year.
Infosys chief financial officer M. D. Ranganath pointed out that once a decision is taken to look at a sale, the company has to classify them as assets held for sale.
Acquisitions of both the companies were done under former CEO Vishal Sikka. "It is neither spectacular nor dismal, yet the optimism looming in the background with new leadership bringing in a refreshed strategy focused more strongly on the marketplace rather than internal issues can be sensed in investor sentiment", said Sanjoy Sen, Doctoral research scholar, Aston Business School, UK.
However, the strategy unveiled by Parekh on Friday, seems to build largely on the steps taken by the company in the past couple of years. The company's approach is to invest in certain spaces within these five areas, he said.
For the full fiscal year 2017-18, profit was up 11.7 percent at Rs 16,029 crore, while revenues grew three percent to Rs 70,522 crore over the previous year.
The company also put subsidiaries Skava and Panaya on sale while reporting the company's fourth quarter earnings, and acquired WongDoody Holding Company, a US-based digital creative and consumer insights agency for about Dollars 75 million.
Seahawks sign backup QB Stephen Morris after postponing workout for Colin Kaepernick
However, the NFL Network reported that Kaepernick's stance on the national anthem was not the reason the workout was postponed. On Thursday, the Seattle Seahawks cancelled a postponed workout with Colin Kaepernick .
The Bengaluru-based company plans to give a special dividend of Rs 10 per share over and above the final dividend of Rs 20.5.
The Infosys Board in its meeting, on Friday, chose to retain the current policy of returning up to 70 percent of the free cash flow of the corresponding financial year.
Co-founder and non-Executive Chairman of Infosys Board Nandan Nilekani also found no wrongdoing in Panaya's acquisition, reaffirming findings of external investigations that there was no merit in the allegations.
Dividend pay-out includes Dividend Distribution Tax (DDT).
A whistleblower has asked market regulators in India and the United States to question the Infosys decision to sell Panaya, asking it to fix accountability of the board that changed a "strategic acquisition to a completely value less" one.
These are "scaling our agile digital business, energising our client's core technology business using automation and AI, employee reskilling and expanding our localisation efforts in the US, Europe and Australia", said Parekh. Moreover, given our view of no major strategic shifts, we do not envision major changes in terms of FY2019 guidance.