Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. India
  4. NSE India Stock Exchange
  5. Infosys Limited
  6. News
  7. Summary
    INFY   INE009A01021

INFOSYS LIMITED

(INFY)
  Report
Delayed Quote. Delayed NSE India Stock Exchange - 10/28 07:25:27 am
1703.9 INR   -1.45%
07:13aBp and Infosys to Develop ‘Energy as a Service' Solution for Campuses and Cities
PU
10/27Asian ADRs Move Lower in Wednesday Trading
MT
10/26Asian ADRs Modestly Lower Tuesday
MT
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Infosys : India's criticism of Infosys, Tata worries businesses

09/08/2021 | 04:42am EDT
FILE PHOTO: The Infosys logo is seen at the SIBOS banking and financial conference in Toronto

(Notes file pictures are available with this story)

* Indian officials, ruling party ally criticised big businesses

* Business leaders worried about hardline approach

* Some executives though call for more corporate accountability

* Corporate India largely silent on criticism

NEW DELHI, Sept 8 (Reuters) - A public diatribe against two Indian business giants by Prime Minister Narendra Modi's officials and his ideological allies has unnerved the business community, several industry executives told Reuters.

Over the weekend, a magazine run by members of the Hindu nationalist Rashtriya Swayamsevak Sangh (RSS) launched an attack on Indian tech giant Infosys for failing to resolve glitches in the income tax website it manages.

The group, which is the ideological parent of Modi's ruling party, called Infosys "anti-national" for letting down the tax system, sending a chill through Indian industry wary of falling on the wrong side of the Modi government.

Just last month, the finance ministry "summoned" Infosys' CEO over the tech issues and in an unusual step took to Twitter to announce the summoning, heightening a media frenzy around a company that has been the face of India's IT's prowess.

And in August, the commerce minister publicly lashed out https://reut.rs/3l0FNK1 at the $106 billion Tata Group for criticizing proposed stringent rules for e-commerce and said local companies should not only think about profits.

In India, safeguarding domestic businesses has been Modi's priority. While government or RSS criticism of foreign businesses like Amazon and Monsanto is common, local businesses are rarely caught in the crossfire.

But the latest events have raised concerns among business leaders about whether Modi is now taking a hardline approach towards domestic giants as well, five industry sources said.

One venture-capital executive said the criticism was akin to "harassment" of businesses and risks souring investor sentiment. Another executive working at a global consultancy said "everyone is scared" as businesses don't want to run foul of the government.

"The frontal attack on iconic elements of Indian businesses have only buttressed the need for companies to ensure they are conforming, not just with tax issues, but with other government initiatives," said Dilip Cherian, an image guru and co-founder of leading Indian PR firm Perfect Relations.

R.C. Bhargava, chairman of Maruti Suzuki, defended Infosys, saying it had played a key role in building India's software reputation globally.

"It needs to explain the glitches, but it doesn't mean there is a conspiracy to damage the country," he told Reuters.

A senior member of RSS, however, said there's nothing wrong in the way the companies have been criticized, saying they must be thick skinned and held accountable.

"Why should questions not be raised, have corporates become a holy cow?" said the RSS official who declined to be identified.

Infosys and Tata didn't respond to a request for comment.

INDIA INC LARGELY SILENT

So far, Modi's government has not commented on the backlash on social media and from politicians. None of the sources who spoke to Reuters wanted to be identified as they fear a reprisal from the government and no Indian industry lobby groups has come out and spoken against government or RSS.

The Indian Express said in an editorial it was "time for India Inc to stand up", saying business leaders had maintained "a studied - and perhaps strategic - silence about the vitriol that has been seeping into the public discourse."

The Infosys controversy is related to the government's new income tax filing website launched on June 7. But there were many glitches which Infosys could not fix, despite assurances.

When the Infosys CEO was summoned in August, the finance minister conveyed "deep disappointment and concerns," giving the company until Sept. 15 to fix things.

The magazine Panchjanya said the company was making the same mistakes over and over again, creating doubts about its motives. "There are allegations that the management of Infosys is deliberately trying to destabilize the Indian economy," it said.

After the furore over the article, Sunil Ambekar, the joint head of the RSS publicity wing, sought to distance the organisation from the contents and said Infosys had made a seminal contribution to the country.

But concerns remain others may be targeted, too.

A mutual fund manager with Infosys and Tata investments said he was worried as it indicated "the government was not pro-business", and there were fears other companies can face such backlash for lapses. (Reporting by Aditya Kalra in New Delhi; Additional reporting by Aditi Shah; Editing by Sanjeev Miglani and Kim Coghill)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
INFOSYS LIMITED -1.45% 1703.9 Delayed Quote.37.68%
MARUTI SUZUKI INDIA LTD 0.18% 7369.7 Delayed Quote.-3.83%
All news about INFOSYS LIMITED
07:13aBp and Infosys to Develop ‘Energy as a Service' Solution for Campuses and Cities
PU
10/27Asian ADRs Move Lower in Wednesday Trading
MT
10/26Asian ADRs Modestly Lower Tuesday
MT
10/26Indian Indices End in Green on Tuesday; Tata Motors Soars 6%
MT
10/26Infosys Chosen to Upgrade Posten Norge's IT Service Management Process
MT
10/26INFOSYS : Bags Contract from Norwegien Postal Service Department
MT
10/26Posten Norge and Infosys Collaborate to Develop next Generation IT Service Management C..
CI
10/26INFOSYS : Posten Norge and Infosys Collaborate to Develop next Generation IT Service Manag..
PU
10/26INFOSYS LIMITED : Ex-dividend day for interim dividend
FA
10/21Asian ADRs Move Lower in Thursday Trading
MT
More news
Analyst Recommendations on INFOSYS LIMITED
More recommendations
Financials
Sales 2022 1 196 B 15 991 M 15 991 M
Net income 2022 223 B 2 980 M 2 980 M
Net cash 2022 300 B 4 006 M 4 006 M
P/E ratio 2022 32,3x
Yield 2022 1,94%
Capitalization 7 236 B 96 760 M 96 747 M
EV / Sales 2022 5,80x
EV / Sales 2023 5,02x
Nbr of Employees 279 617
Free-Float 84,7%
Chart INFOSYS LIMITED
Duration : Period :
Infosys Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends INFOSYS LIMITED
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 37
Last Close Price 1 703,90 INR
Average target price 1 989,73 INR
Spread / Average Target 16,8%
EPS Revisions
Managers and Directors
Salil S. Parekh Chief Executive Officer, MD & Executive Director
Mohit Joshi Co-President
Ravi Kumar S. Co-President & Deputy Chief Operating Officer
Nilanjan Roy Chief Financial Officer
Nandan M. Nilekani Non-Executive Chairman
Sector and Competitors
1st jan.Capi. (M$)
INFOSYS LIMITED37.68%97 883
ACCENTURE PLC35.54%223 632
TATA CONSULTANCY SERVICES LTD.21.90%172 100
INTERNATIONAL BUSINESS MACHINES CORPORATION0.99%112 192
SNOWFLAKE INC.23.35%104 442
AUTOMATIC DATA PROCESSING, INC.24.18%93 823