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Published: Fri, October 27, 2017
Economy | By Melissa Porter

Narayana Murthy Still 'Disappointed' By Infosys, Read His Statement Here

Narayana Murthy Still 'Disappointed' By Infosys, Read His Statement Here

A refreshed board, the return of Nandan Nilekani and a almost year's worth of public battles later, Infosys' iconic founder NR Narayana Murthy said he is "disappointed with the stand taken by the board" on questions of corporate governance raised by him.

On the controversial issue of severance payment to former CFO Rajiv Bansal, the board noted that it could have been handled better and the company has identified opportunities for improvement in processes and practices which have been implemented.

Infosys on tuesday said an investigation into the alleged improprieties related to the acquisition of Israeli automation firm Panaya found no evidence of any wrongdoing and that the entire transaction was above board. This was Infosys' first earnings announcement after Nilekani took over the reins of Infosys after the ouster Vishal Sikka as CEO amid a bitter war of words between the management and the founders. The company that is now being led by Co-founder Nandan Nilekani lowered its revenue forecast for the year today as part of its second quarter results announcement.

"The company now deserves a period of stability and undistracted focus on the business". If anything, the company would "accelerate the execution" of its strategy, he said.

The clean chit is also a setback for Murthy, who had accused the board and the company of having failed in governance norms for over a year, which Sikka and Seshasayee had called a distraction. The firm will look at accelerating the strategy of software plus services model set by Sikka. 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.

Nilekani added: "I believe that all stakeholders acted out of a strong passion for Infosys, wanting what they believed to be the best for the Company and to see it succeed".

Consolidated profits for the three months ended Sep. The company counts JP Morgan Chase, Citigroup, BP PLC, Johnson Controls, Volkswagen, Vodafone and the Association of Tennis Professionals among its clients.

IT services provider Infosys on Tuesday reported 3.4% growth in net profit to Rs. 3,726 crore, from a year earlier.

Revenue, in dollar terms, rose 2.9 percent to $2,728 million for the September quarter.

The revised outlook for FY18 is less than 7.1-9.1% growth in dollar and 3-5% in rupee projected on July 14 and 6.1-8.1 % in dollar and 2.5-4.5 % in rupee estimated in April. The analysts had factored in a 2.6 percent sequential growth in constant currency, and 95 basis points support from net gains due to various currency exchange rate changes. Financial services and manufacturing - two of the IT sector's biggest verticals - saw clients increase spending not only on cloud-based solutions, but even on traditional IT outsourcing.

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