Data points shared by information technology services company Infosys have no “perceivable inconsistency,” ICICI Securities said in its report.
Bengaluru-based Infosys was recently caught in a controversy after a whistleblower group, calling itself Ethical Employees, alleged that the company was taking unethical steps to boost its short term revenue and profit numbers.
In its report, ICICI Securities has now said that it found no irregularities in the deals that Infosys made with companies like Verizon and Stater and that the numbers were “consistent with the nature of these deals and investments in our opinion.”
The investor response to the allegations was due to “absence of proactive disclosures by the company,” the report said, adding that the exits of former chief financial officer Ranganath Mavinakere and the deputy CFO Jayesh Sanghrajka further affected the company’s image.
Several market analysts had also told TechCircle that Infosys should have taken faster action and been more forthcoming with the disclosures.
ICICI Securities has changed its stance on Infosys, by moving its stocks from ‘hold’ to ‘buy’ on Tuesday.
A former Infosys member reportedly told Mint that the large scale manipulations were not a possibility and were intrinsic to the nature of the deals.
According to ICICI Securities, a key risk for Infosys was a high chance of management discontinuity owing to the whistleblower allegations.