Infosys AGM: 11,000 jobs released, Seshayee retires

Mumbai: IT giant Infosys today held its 36th annual general meeting today amid alleged board room clashes and rumours of layoffs.

Here are a few minutes from the meeting:

Retirement of company chairman: Infosys executive chairman R Seshasayee announced his retirement, which is due in May 2018. Seshasayee said it will be his last AGM before he retires next year in May and plans a smooth transition to his successor. 

The effect of automation: Infosys said more than 11,000 jobs have been released due to automation. The revenue per full-tie employee (FTE) increased by 1.2 per cent as a result of automation.“It is a clear demonstration of how software is going to play a crucial role in our business model,” it said. 

Compensation gap: The IT major claimed it had recognized the fact that there exists a major compensation gap between the top management and the employees. To address the same, a company spokesperson said the company has restructures its compensation framework to stock-based rewards.

Rising protectionism: Infosys CEO Vishak Sikka addressed all shareholders in a letter saying that Infosys has been battling rising protectionism, commoditization, increasing client expectations and accelerated competition. “Internally, we had challenges to bring stability to our consulting business and growth to our Finacle and BPO businesses. But amidst all of this, it behoves us to stay focused on our longer-term mission to drive rapid growth in software-led offerings, to capture demand in newer service lines and to renew our core services — a mission to deliver consistent, profitable growth for the benefit of all our stakeholders,” Sikka said. 

The effect of automation: Infosys said more than 11,000 jobs have been released due to automation. The revenue per full-tie employee (FTE) increased by 1.2 per cent as a result of automation.“It is a clear demonstration of how software is going to play a crucial role in our business model,” it said. 

No differences with promoters: The company claimed that the alleged clash between the company’s board and its founders is purely a creation of the media.

Cash balance: Infosys claimed it currently holds on Rs 12,222 crore in cash and cash equivalent as of March 31, 2017. This is in comparison to Rs 24,276 crore of cash it was sitting on at the end of last year. It claimed its deposits stood at Rs 6,931 crore as of March 31, compared with Rs 4,900 crore in FY 16. 

Investor corner: The Infosys board has identified Rs 13,000 crore or USD 2 billion to be paid out to shareholders during FY18 through dividend and/or buybacks which would be decided later. 

Dividend declaration:  The IT company declared a final dividend of Rs 14.75 per share for FY17. It estimates a cash outflow of approximately Rs 4,061 crore – excluding dividend paid on treasury shares  and inclusive of corporate dividend tax.