Infosys announced Tuesday that second-quarter net profit rose 3.4% from a year earlier to ₹3,726 crore helped by a sequential improvement in operating margin.
The Bengaluru-based software services provider, which was reporting its first earnings since the abrupt resignation of Vishal Sikka as CEO in August, also categorically asserted that a review of all prior external investigations into allegations of “wrongdoings”concerning a $200 million acquisition and a severance payout to the company's former CFO had reaffirmed previous findings that there was “no merit to the allegations of wrongdoing”.
Revenue for the three months ended September 30, increased by 1.5% to ₹17,567 crore. Operating margin for the period stood at 24.2%, compared with 24.1% in the quarter ended June, 2017. Infosys, however, trimmed its full-year revenue growth guidance to a range of 5.5-6.5% from its earlier projection of 6.5-8.5%.
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Nandan Nilekani, one of the seven founders of Infosys, took over as the Chairman of the board in August in the wake of Mr. Sikka's departure. Some of the founders of the company led by N.R. Narayana Murthy had at the time alleged corporate governance lapses by the board, triggering a war of words with the board.
The board has been reconstituted since Mr. Nilekani’s appointment and a search is on for a new CEO.
“As previously indicated the chairman has conducted a review of all the external investigations into certain anonymous complaints the company had previously received,” according to a statement filed to the BSE.
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“The review covered a range of matters….including the acquisition of Panaya which was completed by the company in February 2015 and the severance payments to the former CFO.