Infosys to sell subsidiaries Panaya and Skava; Q4 net inches up 2.4%

Our Bureau Bengaluru | Updated on April 13, 2018

Salil Parekh, MD & CEO of Infosys, at a press meet in Bengaluru on Friday   -  SOMASHEKAR GRN

In the three months since Salil Parekh took charge as CEO, IT services major Infosys seems to have carried out some heavy-lifting — taking decisions ranging from rewinding its strategy to focussing on digital opportunities, shrugging off the predecessor’s SaaS model and putting up for sale its subsidiaries Skava and the controversial Panaya.

The company also announced on Friday that it has acquired WongDoody Holding, a US-based digital agency, for $75 million.

By taking the decision to exit the two subsidiaries, Infosys has decided to write off $90 million in Panaya on a standalone basis and about half of the $200 million it paid in February 2015 to acquire the Israeli technology firm. The combined value of both the subsidiaries is $316 million, with liabilities of $50 million. It has been classified as “held for sale” in its books.

Parekh, who took over after Vishal Sikka resigned in August last year, believes that there are four pillars around which the company will be built. 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.

Infosys said its net profit grew 2.4 per cent YoY to ₹3,690 crore for the fourth quarter of FY18. Revenues for the same period increased 5.6 per cent to ₹18,083 crore YoY.

Infosys further said it expects revenue for FY19 to grow 6-8 per cent in constant currency terms and 7-9 per cent in US dollar terms. The revenue guidance is “in line with our expectations”, said Sanjeev Hota, AVP – Research, Sharekhan by BNP Paribas.

Infosys has created a special bonus pool of $10 million for its 2 lakh-odd employees in addition to their quarterly variable pay.


Published on April 13, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like