Infosys jumps after clarification

Infosys rose 3.88% to Rs 714.70 after the company responded to NSE email on whistle-blower complaints.

Last month an anonymous whistleblowers accused the chief executive officer (CEO) Salil Parekh and chief financial officer (CFO) Nilanjan Roy of "unethical practices". The National Stock Exchange (NSE) sought clarification from the company on 22 October 2019 with reference to whistleblower complaints.

Infosys clarified on 2 November 2019 that the anonymous complaints make certain allegations. There is no supporting evidence to substantiate the allegations. Two of the anonymous complaints were received on 30 September 2019. On 16 October 2019, the company was made aware of a letter that refers to 30 September 2019 complaint purportedly written to the office of whistleblower protection program, Washington D.C.

The anonymous complaints were placed before the audit committee and the non-executive members of the board, in accordance with the whistleblower practice of the company.

Further, given the circumstances at this stage, where there is complete absence of prima facie evidence and the anonymous complaints are still under investigation, the company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints. In light of the above, no disclosure is required to be made.

On a consolidated basis, Infosys' net profit rose 4.55% to Rs 3,971 crore on a 3.78% increase in total revenue from operations to Rs 22,629 crore in Q2 September 2019 over Q1 June 2019.

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