Infosys Board and management reiterate 'all is well' to analysts

Chairman Seshasayee maintained that all required governance rules were followed

A day after addressing media queries for over two-hours at a press conference, Infosys Board and key management executives took time out today to answer any doubts in the mind of the analysts. Chairman of the Board R Seshasayee yet again emphasised that no governance lapse have taken place on all the issue raked-up by founders, CEO Vishal Sikka stressed on the fact that Infosys is very much on the road of transforming itself to be a next-generation IT services firm. 

On board appointee Dr Punita Sinha, CEO compensation package, severance packages of ex-CFO Rajiv Bansal and David Kennedy, Seshasayee maintained that all required governance rules were followed. "We have received some names for induction on to the board. We will give due respect to these proposals and take decision in the interest of all the shareholders," added he. 

Sikka told analyst that since the new road map for the company was launched in the third quarter of 2014, it has been moving in a positive manner. "Our revenue growth in FY15 was significantly worst than the industry growth, but since then we have caught up with the industry and done well. Our quarterly revenues from $2.13 billion in Q1 of FY15 has gone up to $2.55 billion in Q3 of FY17. We have managed to hold on to our margin. And all this has been achieved on the basis of renewal of our core business by using automation, zero distance and other initiatives," said Sikka to analysts. 

On asked if this turmoil impacted business, Sikka said: "There is on impact or questions being raised by clients. Infact several clients have written notes of support to me. I am thankful on the notes received and moved by the support they have shown. We did have a meeting with key management people, but in general the management has been strongly focused on client delivery."

When asked about plans for capital allocation Sikka said: "We constantly think about. We are keenly looking at exercising the cash in a way that is most advantageous for the shareholder. There are three main area where the capital will get used--first is in infrastructure our delivery centres, second is area of new strategic growth initiatives of the company and third is mergers and acquisitions. For last two years our speed of acquisitions has not been strong. So the board is looking at it. On share buybacks and other measures, all these suggestions are on the table and none is being discarded."