Infosys finds no evidence yet on whistleblower allegations; here’s what it clarified to stock exchange

The IT heavyweight further said that it will update the stock exchanges on the basis of key findings of the investigation reports once these are concluded.

IT major Infosys on Monday said it has not received any prima facie evidence so far to corroborate any of the allegations made by the anonymous whistleblower. Given the circumstances at this stage, where there is a complete absence of prima facie evidence and the anonymous complaints are still under investigation, the company is not in a position to determine the concreteness, credibility, and materiality of the anonymous complaints, Infosys said in a letter to the National Stock Exchange (NSE) dated November 2, global news agency Reuters reported. Following this, the share price of Infosys rose over 6 per cent in the early trade. The stock hit a high of Rs 732.50 on BSE from the previous close of Rs 688. Infosys shares were trading at Rs 727.50, up 39.50 points, or 5.74 per cent on BSE at the time of reporting.

In October this year, Infosys said that the US Securities and Exchange Commission (SEC) has launched a probe into the whistleblower claims that the Indian software services firm used ‘unethical practices’ to boost revenue and profit. The IT heavyweight further said that it will update the stock exchanges on the basis of key findings of the investigation reports once these are concluded.

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Infosys reported double-digit revenue growth for the fourth consecutive quarter on Friday, with revenues growing by 9.9 per cent year-on-year in dollar terms and 11.4 per cent in constant currency in the September quarter. While the company exited the September quarter with operating margins at 21.7 per cent, the management has maintained that for the full year the margin guidance at 21-23 per cent.