After TCS share price steals spotlight, Infosys CEO Salil Parekh unveils road map ahead

In a detailed presentation to analysts, Infosys CEO and MD Salil Parekh said the company is betting on growth with strategic investments and "will invest in inorganic moves to expand client relevance". This comes in wake of rival Tata Consultancy Services Q4 being announced, which caused TCS share price to zoom and enter the $100 bn club, although it closed short of that mark today

Key investments by Infosys will also focus on enhancing company's capabilities and increasing localisation efforts, Salil Parekh said, adding that it will return up to 70 % of free cash flow, as part of a "capital allocation" plan. Image source: YouTube

India's second largest IT services firm Infosys today outlined a three-year road map to stabilise and accelerate its business and said it will invest in acquisitions to drive growth. In a detailed presentation to analysts, Infosys CEO and MD Salil Parekh said the company is betting on growth with strategic investments and "will invest in inorganic moves to expand client relevance". This comes in wake of rival Tata Consultancy Services Q4 being announced, which caused TCS share price to zoom and enter the $100 bn club, although it closed short of that mark today. Key investments by Infosys will also focus on enhancing company's capabilities and increasing localisation efforts, he said, adding that the company will return up to 70 per cent of free cash flow, as part of a "disciplined capital allocation" plan.

According to the presentation, Infosys will focus on stabilisation in FY19 followed by building momentum the following year, and acceleration thereafter. Infosys said it is investing in digital capabilities and priority services, infusing artificial intelligence and automation, reskilling "talent at scale" for company and its clients as well as hiring locally in various markets. Infosys estimates the agile digital market opportunity to be between USD 160-200 billion dollars.

Stating that it has a "large and growing agile digital portfolio", the company said its digital revenue in FY18 stood at USD 2.79 billion, which was 25.5 per cent of its total revenue. Parekh, who came on Board as the CEO in January this year, has been tasked with the turning around the company, that faced a year long acrimony between founders and previous management over corporate governance issues. The CEO said he has been spending time meeting clients and employees to chart out the company's growth blueprint.

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