Moneycontrol
Last Updated : Apr 13, 2018 06:07 PM IST | Source: Moneycontrol.com

Salil Parekh announces 4 pillars of his strategy for Infosys, to hive off 3 units

The three units include Kallidus, Skava and Panaya, which were acquired during the tenure of Parekh's predecessor, Vishal Sikka.

Neha Alawadhi @alnehaa
Salil Parekh. (Image: Reuters)
Salil Parekh. (Image: Reuters)

Infosys Chief Executive Salil Parekh on Friday unveiled a new strategy for the information technology services major, even as the company said it would look for potential buyers for three of its subsidiaries.

Parekh said, "The strategy has four pillars: scaling an agile digital business, energising Infosys' core businesses, reskilling employees to help them achieve their aspirations and localising within its operating markets."

The company said it would look for potential buyers for its units, Kallidus, Skava and Panaya. The three companies were acquired during the tenure of Vishal Sikka, Parekh's predecessor.

Infosys expects the sale of the three companies to be completed by March 2019 and "assets amounting to Rs 2,060 crore (USD 316 million) and liabilities amounting to Rs 324 crore (USD 50 million) in respect of the disposal group have been reclassified and presented as 'held for sale', " the statement read.

Infosys will take an impairment loss of Rs 118 crore (USD 18 million) in respect of Panaya, which has been recognized in the consolidated profit and loss for the quarter and year ended March 31, 2018.

The corresponding write down in the investment value of Panaya in the standalone financial statements of Infosys Ltd is Rs 589 crore (USD 90 million).

Separately, Infosys also acquired WongDoody Holding Company, a US-based digital creative and consumer insights agency for about USD 75 million.

However, Parekh did not elaborate on a larger merger and acquisition strategy, only saying that the company would "be continuing to look at what will fit in."

Parekh, a veteran of French IT company Capgemini, was widely expected to draw from his experience in consulting and IT services in defining a new strategy for the company.

Given that he is credited with leading the takeover of i-Gate by Capgemini for USD 4 billion, more clarity on the acquisition strategy will be a key talking point in the coming quarters.
First Published on Apr 13, 2018 06:07 pm
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