On Saturday (June 24), Infosys will hold its 36th annual general meeting (AGM) at Christ University Auditorium, Hosur Road, Bengaluru, from 3 pm. The meeting assumes significance in the wake of recent developments, the latest being its comments on shareholder activitism and its negative impact on the company's performance.
Shareholders would be keen to ask a range of questions to the top management, especially CEO and MD Vishal Sikka, in the context of the company's performance, conflict with founders, rumours of stake sale by founders (denied by the company) and likely share buyback.
Read: Infosys refers to risk from 'activist shareholders' in US SEC filing, almost blames founders
Here are some of the key takeaways for shareholders:
a. The capital allocation policy says the company will pay shareholders up to 70 percent of free cash flows (defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows). Besides, it also set aside Rs 13,000 crore to be paid to shareholders in 2017-18 "by way of dividend and/or share buyback".
Will the company disclose plans, if any, to buy back shares? If yes, will there be a time-frame?
b. Cash and cash equivalents stood at Rs 19,153 crore (standalone) and Rs 22,625 crore (consolidated) as of March 31, 2017.
How does the company intend to use this money?
c. In rupee terms, consolidated revenues grew 9.7 percent YoY to Rs 68,484 crore and net profit rose 6.4 percent to Rs 14,353 crore in 2016-17.
Does the company have estimates of revenue growth for the current fiscal?
d. The company said it would appoint a law firm to review corporate governance standards.
Has the firm submitted its report or is there any update?
e. The company is yet to make an announcement on salary hike for employees.
What would be the average salary hike this year?
f. From a geographical viewpoint, revenues were maximum from Americas (61.9 percent), followed by 22.5 percent Europe and 3.2 percent India.
Will this undergo a change in view of various trade, economic and political changes being witnessed, especially in the US and the UK? What are the challenges?
g. N R Narayana Murthy returned to the company in June 2013, seven years after he stepped down, only to quit within a year.
Is there a possibility of him joining Infosys again?
