Infosys has doled out 95% of variable pay to its employees for the third quarter of the current fiscal, which is its highest in the last nine quarters. In the current scenario when salary hikes for IT professionals have come down to single digits, this is good news for employees of Infosys. Infosys chief operating officer UB Pravin Rao said, “Our decent performance in quarter three has enabled us to pay the highest level of variable payout for the last nine quarters to our employees.

The country’s second largest IT services exporter, Infosys registered a 37.6% sequential rise in net profit for the third quarter of FY18 boosted by a tax reversal of $225 million following a recent agreement with the US Internal Revenue Service (IRS); sans this, the company’s bottom line would have actually dipped. Infosys reported a net profit of $796 million for the third quarter compared with $578 million in the second quarter of the fiscal, even as it recorded a sequential dollar revenue growth of 1% (0.8% in constant currency) to $2.75 billion.

Infosys Technologies, the country’s second-largest software services firm, is scheduled to report its earnings for the September-December quarter on Friday. This quarterly earnings report of the company will be keenly watched for the guidance it gives under its new chief executive officer (CEO) Salil Parekh.

If terms of earnings, if analyst estimates are anything to go by, Infosys’ third-quarter show could be rather tepid.

Infosys has announced an Advanced Pricing Agreement (APA) with the US Internal Revenue Service (IRS), under which both companies have agreed on a methodology to allocate revenues and compute taxable income of the company’s US operations. The agreement covers a 10-year period from FY11-21. Infosys will reverse tax provisions of $225 million that were made in the previous period and are no longer required.

Tata Consultancy Services (TCS), Infosys, Wipro and Tech Mahindra were among 13 stocks from the information technology (IT) sector that hit their respective 52-week highs on Wednesday in an otherwise subdued market on expectation of improvement in outlook.

KPIT Technologies, NIIT Technologies, Persistent Systems, Tata Elxsi, Vakrangee, Mastek, Infinite Computer Solutions (India), Hinduja Global Solutions and BLS International were other IT stocks from the S&P BSE500 and S&P BSE Smallcap index that touched their respective 52-week highs in intra-day trade today.

Infosys on Tuesday has signed an Advance Pricing Agreement (APA) with the US Internal Revenue Service (IRS), reducing its tax burden in the US by one percentage point till 2021 and giving clarity on tax obligations in the country.

Under the APA, Infosys and the IRS have agreed on the methodology to allocate revenues and compute the taxable income of the company’s US operations.

Global research firm CLSA reiterated its bullishness on the shares of India’s second-largest software exporter Infosys, and upped its target price on the shares to Rs 1,230 from Rs 1,140 earlier. Infosys shares were trading at Rs 1,025.55 on NSE this morning, up by more than 1.3%. CLSA’s target price implies an upside of more than 20% from the current market prices. “Infosys just saw through one of its worst recent years but the company has the potential of completing strategic retooling and improve capital allocation,” CLSA said in its report.

Former Infosys Chief Financial Officer V Balakrishnan on Saturday praised the company's co-founder Nandan Nilekani for correcting the wrongdoings committed by the previous board, by fixing a reasonable salary for the incumbent CEO.

I think the board under Nandan has done the right thing to correct the previous wrongdoings. The salary structure for the current Chief Executive Officer Salil Parekh looks reasonable with a large part tied to variable salary with a greater focus on long-term retention, he told PTI here.

Salil Parekh will earn an annual salary of Rs 162. 5 million ($ 2.55 million) as the CEO of Infosys, which is a quarter of what Infosys had signed up with his high profile predecessor Vishal Sikka, who quit the firm after three years in turmoil.

The compensation also reflects the reality at Infosys and its chairman Nandan Nilekani who would like the low profile senior executive to execute a vision of focused delivery for customers than over promise and under delivery that would be in contrast with the company's culture.

BENGALURU: Infosys has divested its stake in ANSR Consulting Holdings for $1 million. Bengaluru-based ANSR, led by Lalit Ahuja, helps global companies set up captive centres in the country. Among the companies it has brought in are L Brands, Lowe's, Target and Swiss Re.

Infosys invested $1.4 million for less than 5% stake in ANSR two years back, when the company was headed by Vishal Sikka. This was the company's first investment in an Indian firm after setting up a $500 million Innovation Fund.

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