Infosys advances 1% on growth plans, top Sensex contributor

NEW DELHI: Infosys Ltd rallied as much as 1.12 per cent in trade on Monday, after media reports suggested that CEO Vishal Sikka, is evaluating a dozen more startups - all aimed at gaining cutting-edge technology such as automation and artificial intelligence (AI).

At 09:40 a.m.; Infosys was trading 1.1 per cent higher at Rs 2308 and was also the top contributor to the Sensex rally of over 100 points. It hit a low of Rs 2290 and a high of Rs 2309.90 in trade today.

"We have a dozen targets we are looking at now," Sikka said in an interview to ET, days after the software company bought automation startup Panaya for Rs 1,200 crore ($200 million).

"Anytime we see a company with talent, capabilities and IP in these areas (AI and collaboration technology) we would love to go for an acquisition," said Sikka, a former SAP board member and the first non-founder CEO of Infosys. "That is our pursuit."

Sikka, 47, will be able to leverage Infosys' $500-million startup fund as well as about $5 billion of cash on its books to buy the kind of firms he is scouting for. For Infosys, Panaya was its second-biggest buyout after its purchase of management consulting firm Lodestone for $390 million in 2012.

Over the long haul, his goal is to double revenue per employee to more than $100,000 from about $52,000 now, although he admits that would take a while, added the ET report.