India's Infosys's Q4 profit rises 2.4 pct

India's Infosys's Q4 profit rises 2.4 pct

Under the International Financial Reporting Standards, in dollar terms, consolidated net income declined 28.1 per cent sequentially to $571 million but gross income was up 1.8 per cent sequentially to $2,805 million.

"Net profit for the year included positive impact of an advance pricing agreement with the US Internal Revenue Service in the third quarter", said the company in a statement later. Foreign brokerage Citi had anticipated Infosys to guide for 5.5-7.5 per cent revenue growth in constant currency terms and 6.5-8.5 per cent in dollar terms.

On yearly basis, net income, however, grew 5.3 per cent and gross income grew 9.2 per cent for the fourth quarter in dollar terms under the IFRS.

During the quarter, the company evaluated potential buyers for its subsidiaries, Kallidus and Skava (together referred to as Skava) and Panaya.

The company was also under fire from its founders previous year over the Panaya deal, when the latter had questioned corporate governance practices related to the deal.

The WongDoody acquisition, said Parekh, was more in line with the company's new strategy to focus on digital and agile business models. "During the year, the company implemented the capital allocation policy including the successful closure of $2 billion share buyback programme in December 2017 and healthy increase in dividend per share for the year." said CFO M D Ranganath. The new Parekh, laid out a new strategic plan for the IT major, that the company would follow in the upcoming year. The company's approach is to invest in certain spaces within these five areas, he said.

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In a regulatory filing on the BSE, the city-based IT firm said consolidated revenue for the quarter under review was up 1.6 per cent sequentially to Rs 18,083 crore in rupee terms.

This will be done through a special dividend of Rs 10 per share (resulting in a payout of about Rs 2,600 crore in June 2018).

Parekh, a former Capgemini executive, who took over as Infosys CEO in January, is tasked with twin challenges of reviving growth at the former bellwether of India's $154 billion IT industry and forging peace between its founders and board following a public spat that led to the ouster of his predecessor Vishal Sikka.

Infosys expects revenue for the 2018-19 fiscal to grow in the range of 6-8 percent in constant currency terms and 7-9 percent in USA dollar terms.

"The acquisition fits into the digital scale up for us. Our robust performance is a reflection of the strong impact we have with our clients and the dedication of our employees", Salil Parekh, CEO, Infosys said. It is underwriting the strategy that we are exploring and executing in the market...