analysts are now mostly convinced that the exodus is more a part of a conscious reorganization expectedly being driven by Murthy himself rather than being a sign of people deserting a sinking ship, as was believed in some circles initially.
The announcement of the resignation of Chandrashekar Kakal, senior vice president at technology bellwether Infosys , met with questions but not a sense of shock that appeared to pervade during the spate of similar such announcements in the recent past.
In the ninth senior-level exit since Infosys founder NR Narayana Murthy returned to take helm of the struggling heavyweight, analysts are now mostly convinced that the exodus is more a part of a conscious reorganization expectedly being driven by Murthy himself rather than being a sign of people deserting a sinking ship, as was believed in some circles initially.
Murthy returned mid last year to take charge as non executive chairman as the firm appeared to be struggling in growing its sales and profits -- it logged flat revenue growth between 2009 and 2011 -- and as the gap between Infosys and leader TCS widened considerably.
Also read: Kakal quits Infy, co sees 9th high-profile exit
Kakal was incharge of delivery at the Business IT services, consulting and system integration and the Indian business, which meant he had a say in nearly 95 percent of the company's revenues.
But a recent organization, where UB Pravin Rao and BG Srinivas took over as presidents at the company, meant Kakal may have seen his responsibilities being curtailed.
Among other senior employees that have quit Infosys in the past several months are former CFO and board member V Balakrishnan who took the political plunge by joining the Aam Aadmi Party, and Ashok Vemuri, who joined iGate as CEO.
A note by JP Morgan said that Kakal's exit may hurt the company, contrary to Murthy's assertion that management exits were unlikely to have a meaningful impact on the firm. But the brokerage was willing to "give the benefit of doubt" to the Infosys management.
A few days earlier, Murthy had said the company was shedding excess flab, referring to the slew of senior exits, and had warned of more such exits in the future.
"The exits are inevitable as the company goes through a massive turnaround effort and there may be further senior-level exits," Kotak said, while reiterating a 'buy' rating on the stock owing to "strong demand, potential margin upsides and undemanding valuations".
Edelweiss said Kakal's resignation did not come as a surprise given the recent management commentary warning of further exits.
Infosys shares did not react in early Mumbai trading, up a marginal 0.2 percent at the time of writing.
Infosys stock price
On March 21, 2014, at 14:13 hrs Infosys was quoting at Rs 3287.05, down Rs 15.95, or 0.48 percent. The 52-week high of the share was Rs 3847.20 and the 52-week low was Rs 2190.00.
The company's trailing 12-month (TTM) EPS was at Rs 142.80 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 23.02. The latest book value of the company is Rs 627.95 per share. At current value, the price-to-book value of the company is 5.23.
Anda sedang membaca artikel tentang
Market takes latest Infosys exit in stride
Dengan url
https://kesehatanda.blogspot.com/2014/03/market-takes-latest-infosys-exit-in.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Market takes latest Infosys exit in stride
namun jangan lupa untuk meletakkan link
Market takes latest Infosys exit in stride
sebagai sumbernya
0 komentar:
Posting Komentar