Infosys CEO Vishal Sikka has told analysts that none of the possibilities including utilising surplus cash with the company for a buyback are off the table.
“This is something that we constantly think about, constantly look at. None of these options is off the table. The key is to ensure that we are looking at exercising the cash in a way that provides the most advantage to the shareholders. The way we think about this is, looking at in the next four, five years of the business and seeing where the capital is going to be needed. There are three main areas there. The capital for the buildings and the infrastructure and things like that where our DCs are or the potential of growing this in the US and so forth with the possibility of the new policies and things of this nature. The second one is in the area of strategic growth initiative for the company. And then the third one is in the area of M&A. So based on that, as you said correctly, that in the last two years the pace of acquisitions has not been so strong. So this is something that we are thinking about and the Board is thinking about. As we get to a conclusion we will obviously let you know. Yesterday also some people brought up this issue around us that we are averse to a share buyback, and we said none of this is the case. All the options are on the table and we are not opposed to anyone of them,” he told analysts on call on February 14. The minutes of this call was submitted today to BSE .
Earlier the analyst wanted to know as a lot of the cash reserves has not been spent and the company had been very selective in the acquisitions and the process has been slow, so, when does it take a step back and consider paying out the excess cash reserve in the form of a dividend or a buyback.
Today TCS announced its decision to consider buyback on February 20. Earlier US-based IT company Cognizant had also announced similar plans leading to pressure on IT companies to consider rewarding shareholder through buyback.