The stock prices of Indian multinational Infosys fell by 16% on Tuesday, following an anonymous letter by whistleblowers accusing Chief Executive Officer (CEO) Salil Parekh and Chief Financial Officer (CFO) Nilanjan Roy of indulging in unethical practices to boost revenue and profits in recent quarters.
Shares of Infosys tanked as much as 16 per cent to Rs 645 apiece on the BSE on Tuesday after the revelation that a group describing itself as ‘whistle-blower staffers’ had accused the management of hiding the true financial picture.
The latest charge is from an anonymous group, calling itself ‘Ethical Employees’. Their letter, dated September 20, was addressed to the board of directors and to the US markets regulator, the Securities and Exchange Commission (SEC).
Bengaluru: A few anonymous employees of global software vendor Infosys have accused its Chief Executive Officer (CEO) Salil Parekh and Chief Financial Officer (CFO) Nilanjan Roy of unethical practices for many quarters.
"Parekh and Roy have been resorting to unethical practices for many quarters, as evident from their e-mails and voice recordings of their conversations," said the complainants,
The second quarter performance of Infosys were in line with estimates but shares declined 2.4% in early trade. Infosys, which reported Q2 earnings after market hours on Friday, also raised the low end of its revenue forecast for the year on upbeat demand for its digital services.
Infosys, the country’s second largest software services exporter, reported double-digit revenue growth for the fourth consecutive quarter on Friday, with revenues growing by 9.9% year-on-year in dollar terms and 11.4% in constant currency in the September quarter. Infy’s performance is in stark contrast to its larger peer Tata Consultancy Services (TCS), which reported weak numbers for the second consecutive quarter.
Infosys may further upgrade its revenue guidance for the financial year 2019-20 (FY20) when it releases its September quarter (July-September) results on Friday. The Bengaluru-headquartered IT company, as per analysts, remains on a firm footing given the recent deal momentum, strong positioning in clients and favourable arithmetic (revised guidance implies a 1-2 per cent compounded quarterly growth rate through Q2-Q4FY20) – hence creating the room for more upgrades.
As many as 17 Indian companies, including Infosys, TCS and HDFC, have been named in the list of World’s Best Regarded Companies compiled by Forbes. IT major Infosys has been ranked third in the list of World’s Best Regarded Companies, along with global payments technology company Visa and Italian car-maker Ferrari on the first and second position, respectively. Infosys jumped to the third spot from 31st position in 2018. “Infosys’ leading position headlined an Asian invasion in the rankings,” Forbes said.
The Ministry of Electronics and Information Technology on Friday constituted a committee under the chairmanship of Infosys co-founder Kris Gopalakrishnan (pictured) to study issues related to non-personal data and suggest how the government should look at regulating it.
“There is a growing trend towards platformisation of the digital economy, and in such a platform economy, data could play a critical role as a community or public resource,” the ministry said.
IT major Infosys has bought back 11.05 crore of its shares under its Rs 8,260-crore buyback offer that began in March this year.
"...The company bought back 11,05,19,266 equity shares at an average price of Rs 747.38 per equity share; and deployed an amount of Rs 82,59,99,99,430.03 deploying 99.999999 per cent of the maximum buyback size (excluding transaction costs)...till August 26," Infosys said in a regulatory filing on late Monday night.
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.