Infosys eyes acquisition of SaaS, cloud-based companies

IT services company Infosys is actively pursuing acquisitions in the software-as-a-service (SaaS) and cloud-based sectors to strengthen its portfolio in emerging high-growth niche markets.

At the company’s 43rd Annual General Meeting (AGM) on June 26, Chief Executive Officer Salil Parekh disclosed their strategic focus on expanding into SaaS, enterprise cloud services, and exploring new geographical markets. According to reports, Parekh highlighted recent acquisitions, including an engineering services firm, specialising in the automotive sector, and another in the semiconductor industry.

Shares of Infosys gained 0.5% in early trade on Thursday, June 27, reaching an intraday high of ₹1,549.65 apiece, after opening the session at ₹1,538.45, lower than its previous close of ₹1,540.70. At 1:30 pm, the stock was trading at ₹1,564.85, up by 1.54% on NSE.

During the AGM, Infosys Chairman Nandan Nilekani reportedly said that the company is actively engaged in advancing 225 Generative Artificial Intelligence (Gen AI) programs for its clients. Additionally, Infosys has developed 23 AI industry blueprints tailored to address specific challenges across various sectors. As highlighted in the company's presentation, Infosys also disclosed the filing of 46 AI-related patents up to the financial year 2023-24.

Infosys announced on May 10 that it had successfully acquired semiconductor design and embedded services business InSemi.

Before that, on April 18, in an exchange filing, Infosys announced that it had finalised the acquisition of in-tech Holding GmbH, a leader in engineering R&D services.

On April 18, Infosys also announced its financial results for the quarter and year ended March 31, 2024. The Bengaluru-based company reported a 30% year-on-year increase in consolidated net profit, reaching ₹7,969 crore for the March 2024 quarter, compared to ₹6,134 crore in Q4FY23.

Despite challenges, Infosys achieved a 1.3% year-on-year growth in sales, amounting to ₹37,923 crore against ₹37,441 crore. The company disclosed an operating margin of 20.1%, marking a slight decrease of 0.9% year-on-year and 0.4% quarter-on-quarter.