JOIN USBengaluru-based IT bellwether Infosys on Friday decided to sell off its two subsidiaries - Skava (along with Kallidus) and Panaya - which were acquired by the company during its former CEO and MD Vishal Sikka's tenure.
The sale of these three subsidiaries is expected to be completed by the end of the current financial year and will dispose of assets worth Rs 2,060 crore and liabilities worth Rs 324 crore.
"On reclassification, an impairment loss of Rs 118 crore ($18 million) in respect of Panaya has been recognised in the consolidated profit and loss for the quarter and year ended March 31, 2018. The corresponding write down in the investment value of Panaya in the standalone financial statements of Infosys is Rs 589 crore," the company said.
Last year, on his return to Infosys, company's Non-Executive Chairman Nandan Nilekani had set in place the strategic review of all the initiatives rolled off by Sikka.
Company's Chief Financial Officer, M D Ranganath said the company had reviewed its entire portfolio this quarter and decided to continue with Edge and Nia, but decided to dispose of Skava and Panaya.
"We looked at all our platforms and subsidiaries and platforms and reviewed them. The objective was very simple – where do we need to accelerate our investments and which are the areas where we need to diminish with our overall direction that we have taken," Ranganath told in reply to a question from DH.
The controversy surrounding Panaya deal, ultimately led to the unceremonious exit of the company's former CEO and MD, as well as resulted in the recasting of the board.