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New Infosys CEO to set out priorities by April

Reuters  |  BENGALURU 

By and Mehta

(Reuters) - The new of Ltd said he would lay out updated strategic priorities for India's second-biggest by April after the company maintained its full-year outlook.

reported a rise in net profit of 38.3 percent from a year earlier to 51.29 billion rupees ($806 million) for the quarter to Dec. 31, way above analysts' estimates. The figures -- the company's third quarter -- were helped by tax benefits from a deal with the U.S. Internal Service.

Salil Parekh, who joined the company in January, said he planned to engage with clients, employees, partners, senior executives and the company's board over the next three months to build a "comprehensive view".

Parekh, who is only the second outsider to lead the Bengaluru-headquartered company, said the market offered tremendous opportunities in newer areas such as data, analytics, and The challenge would be to position the company in those areas.

"It's an opportunity with a strong foundation to build a transformation story at Hopefully to make it stronger with all of the team at Infosys," Parekh told a conference.

He would also hope to stay connected with the co-founders, he added.

saw a management shake up with Parekh's predecessor quitting last year after a long-drawn public feud with the company's main founder over alleged corporate governance lapses. The feud also led to changes in its board with a former taking over as


On Thursday, Infosys' bigger rival and top Indian Ltd reported a 3.6 percent fall in net profit due to a muted performance in its sector for the third quarter.

India's $154 billion gets the majority of its from the North American and the European markets. But a slowdown in key segments including and uncertainties over employee visas in the have weighed on the company's growth.

The come as Indian outsourcers anticipate changes to work visa rules in their biggest market, the Indian IT services firms use H-1B visas to fly engineers and developers to the U.S. to service clients.

Infosys' profit in the third quarter was driven by an Advance Pricing Agreement it sealed with US IRS, which the company said added about 6.29 rupees to its consolidated basic earnings per share in the quarter to take it to 22.55 rupees.

It also maintained its growth forecast for the year to March at 5.5 percent to 6.5 percent in constant currency terms.

The sector, which contributes over a quarter of its revenues, witnessed muted growth in the three months to the end of December, said Pravin Rao, of

"But we remain very confident about this sector and we believe that the calendar year 2018 will be much better than calendar year 2017 for the financial services," Rao said.

($1 = 63.6400 Indian rupees)

(Reporting by and in Bengaluru; Additional reporting by Jessica Kuruthukulangara in Bengaluru; Writing by Promit Mukherjee in Mumbai; Editing by and Keith Weir)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 00:01 IST