Despite Various Top-Level Exits, Infosys' Stocks Are Up By 50 Percent


Murthy intends to go about achieving his new mission by focusing on reducing operating costs by trimming the company’s senior employees; an organizational restructuring which has already begun, and by cutting short the subcontractors it employs at on-site locations.

Meanwhile, analysts have been re-rating the company’s stocks and are likely to continue doing so, as its valuations are at a steep 20 percent discount to TCS.

On the bright side, Infosys managed to surprise the analysts who had expected the company’s growth to be between 2.5 percent and 3.5 percent, with a growth of 3.8 percent. The firm also raised its annual sales growth forecast from 6-10 percent to 9-10 percent.

However, with Balakrishnan’s exit, the company’s choices for a new CEO are down to its internal executives. Most observers believe, despite Murthy’s return, Infy’s next and first non-founder chief executive officer when the current co-founder SD Shibulal steps down in 2015, will most likely be one of its senior executives.

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