Info-tech

Infosys spent ₹1,165 crore on acquisitions last financial year

Our Bureau Bengaluru | Updated on May 20, 2019 Published on May 20, 2019

During 2018-19, Infosys spent ₹1,165 crore to acquire majority stakes in three companies and is set to buy another company for ₹990 crore. According to the annual report of the company, Infosys acquired 81 per cent voting interest in Hitachi Procurement Service Company for ₹206 crore in April this year.

It is set to buy a 75 per cent stake in Stater NV, a wholly-owned subsidiary of ABN Amro Bank NV for ₹990 crore. It had bought 100 per cent of Wong Doody Holding Company Inc. for ₹514 crore, Fluido Oy for ₹560 crore and 60 per cent stake in Infosys Compatz Pvt Ltd for ₹91 crore. As of now, Infosys has 25 direct subsidiaries and 34 step-down subsidiaries.

The company has invested $59 million in several start-ups out of the $500 million fund it had set up. It divested stakes in two start-ups and gained $8 million. Infosys said in its report that its capital expenditure nearly doubled to ₹3,040 crore in 2018-19. This includes ₹2,008 crore spent on infrastructure, ₹1,023 crore on buying computer equipment and ₹9 crore on vehicles, on a standalone basis. The company also has ₹30,793 crore in working capital on a standalone basis and ₹34,240 crore on a consolidated basis.

The company said its non-executive chairman Nandan Nilekani did not voluntarily seek any remuneration during the year. In his letter to the shareholders, Salil Parekh, CEO and MD of Infosys, pointed out that after some years of change, it has been a year of stability, with a steady leadership team ready to engage with clients and ready to drive superior delivery capability. All this resulted in the market capitalisation growing by $10 billion.

Published on May 20, 2019
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