Infosys CEO Quashes Detention Rumors Amid Q3 Earnings Miss
Overview
Infosys CEO Salil Parekh has refuted social media claims of an employee being detained by US immigration authorities, clarifying only one instance of entry denial. The IT giant's third-quarter net profit fell 9.6% sequentially to ₹6,654 crore, missing analyst estimates. Infosys shares closed marginally higher by 0.62% at ₹1,608.90 on January 14.
Stocks Mentioned
CEO Clarifies Immigration Incident
Infosys CEO and Managing Director Salil Parekh dismissed reports circulating on social media alleging the detention or deportation of a company employee by US immigration authorities. Speaking during Infosys's third-quarter earnings conference on January 14, Parekh clarified that these allegations were incorrect.
"No Infosys employee has been apprehended by any US authority," Parekh stated. "A few months ago, one of our employees was denied entry into the US and was sent back to India." This statement aimed to counter viral posts that claimed a Mysuru-based employee on a US project was picked up by Immigration and Customs Enforcement (ICE) agents and given a stark choice between jail or deportation, allegedly facing public humiliation.
Third Quarter Financial Performance
The company reported a net profit of ₹6,654 crore for the October-December quarter. This figure fell short of the CNBC-TV18 poll estimate, which predicted ₹7,445 crore. The net profit also represents a sequential decline of 9.6% from the ₹7,364 crore recorded in the September quarter.
Earnings Before Interest and Tax (EBIT) for the quarter stood at ₹9,479 crore, slightly below the poll estimate of ₹9,624 crore but showed a marginal 1.3% sequential increase from ₹9,353 crore. The operating margin for the quarter was 20.8%, coming in just below the expected 21.3% and the preceding quarter's 21%.
Market Reaction and Headcount Growth
Shares of Infosys Ltd. concluded trading on Wednesday, January 14, with a modest gain of 0.62%, closing at ₹1,608.90 on the National Stock Exchange (NSE). In parallel, Infosys announced a significant increase in its workforce, adding 5,043 employees in the third quarter. This brought the company's total headcount to an 11-quarter high, indicating continued expansion despite the earnings fluctuations.
