Mumbai/Bengaluru: Infosys Ltd, India’s second-biggest software services exporter, said on Thursday it would return up to Rs 13,000 crore to shareholders, yielding to pressure for a share buyback from a group of founders and former executives.

It also announced the appointment of Ravi Venkatesan, an independent director, as co-chairman of the board – part of efforts to address the founders’ corporate governance concerns.

Some founders and former executives of the Bengaluru-based company have publicly accused its board of governance lapses and urged it to follow the lead of rival Tata Consultancy Services <TCS.NS> that announced a $2.4 billion share buyback in February.

Infosys said it would return up to Rs 13,000 crore ($2.02 billion) to shareholders in the fiscal year ending March 2018, adding the manner of the payout will be decided by the board.

However, Infosys shares fell 2.4 per cent in early trading on Thursday, as the market had been hoping for a larger payout.

The company also reported a small rise in consolidated net profit to Rs 3,603 crore ($559.45 million) in the three months to March, while revenue grew 3.4 per cent to Rs 17,120 crore.

Analysts, on average, had expected a consolidated profit of Rs 3,567 crore, according to Thomson Reuters data.

Infosys said it expects revenue for the year 2017-18 to grow 6.5 per cent to 8.5 per cent in constant currency terms.

($1 = Rs 64.3975)

© Thomson Reuters 2017

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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