The current environment is throwing up “good opportunities in the merger and acquisition space”, Infosys Chief Executive Officer Salil Parekh has said, adding the Bengaluru-headquartered IT firm will look at companies that offer strong strategic and cultural fit.
While Infosys is on “look out at all times” for good acquisitions, “this is a good environment for finding it”, Parekh said.
Infosys is seeing “very good opportunities” in the M&A environment, he observed.
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“...and this is a good environment. We have a very strong balance sheet, a very good way to deploy it. If we find a company or an entity which fits in strategically but also culturally, and we have a way of integrating it, we will look at that,” Infosys top honcho said during the Q4 earnings conference recently.
He was responding to a question on whether the weak US macro environment and the global uncertainties are offering lucrative opportunities in the merger and acquisition space.
Infosys this week reported lower-than-expected growth in the fourth quarter net profit and gave a weak 4-7 per cent revenue growth guidance for FY24 amid the tightening of IT budgets by clients following turmoil in the US banking sector.
India’s second-biggest software services firm posted 7.8 per cent year-on-year growth in consolidated net profit at Rs 6,128 crore in the January-March quarter. But the profit fell 7 per cent when compared to the preceding October-December quarter.
The revenue growth in constant currency for FY23 came in at 15.4 per cent, lower than the guidance. Infosys’ Q4 year-on-year-growth was 8.8 per cent and the sequential decline was 3.2 per cent in constant currency terms.
Revenue rose 16 per cent year-on-year in the fourth quarter of FY23 to Rs 37,441 crore but represented a decline of 2.3 per cent when compared to the December 2022 quarter.
Infosys expects to post revenue growth of between 4 per cent and 7 per cent for the fiscal year ending March 2024, lower than analyst expectations.