'Downright hypocrisy' - analyst reacts to Infosys CEO exit

21 August, 2017, 21:07 | Author: Leticia Walters
  • Infosys CEO Vishal Sikka and co-chairman Ravi Venkatesan had a tough working relationship on the board

On Friday, the Infosys stock touched a 52-week closing low of Rs 923.10, falling 9.6 percent on the news of Sikka's exit.

A reported email from Infosys co-founder Narayana Murthy, which alluded to recently ousted ex-CEO Vishal Sikka as "CTO material rather than CEO material", is a claim which "smacks of irony at best and downright hypocrisy at worst", according to one analyst. As per reports by PTI, the fast-paced developments at India's second-largest IT firm were the talking point throughout as the stock took a severe beating dragging down the markets. State-run oil explorer and marketing company ONGC has replaced Infosys to become the tenth most valuable company on BSE.

Infosys and its larger rival, Tata Consultancy Services Ltd, also face a USA administration that's cracking down on the work visas the companies need to serve key American clients.

"Infosys has underperformed Sikka's lofty goals set in 2015 and has seen a sharp slowdown in growth", said Rudra.

"Infosys will have to move quickly to establish a new governance mechanism for its top clients and reassure them it is still committed to the vision Sikka had articulated", Peter Bendor-Samuel, CEO of IT consultancy Everest Group, told ET. "While in near term it's (Dr Sikka's resignation) a setback for the company, but given the strength of the board of the company, we believe that the company will be overcome the setback", Sarabjit Kour Nangra, VP (Research- IT) at Angel Broking said. Vishal Sikka also blamed a continuous stream of "false, baseless, malicious and increasingly personal attacks" that were "amplified by the very people from whom we all expected the most steadfast support". The company's market value surged by US$4.6 billion to US$31.78 billion over the period.

Sikka's resignation is the second major instance in the past year where Indian promoters have wielded control over the company after handing over the reigns.

Infosys, which counts Apple, Volkswagen and Wal-Mart Stores among its customers, has underperformed the Nifty IT index this year amid the attacks from its founders and its USA challenges. "He was trying to make Infosys an innovation-driven company, not a commoditised service provider", said an Infosys engineer who asked not to be named because of the sensitivity of the issue.

"This does not augur well for the future of the company, for the shareholders, big and small, and more importantly for the employees", said Gaurang Shah, head investment strategist at Mumbai-based brokerage Geojit Financial Services.


  • Kylie discloses why she broke up with Tyga

    Kylie discloses why she broke up with Tyga

    After what happened with Tyga , it sounds like Jenner will continue to keep her relationships as private as possible. Presently, Kylie Jenner is having a time of her life with A-list rapper Travis Scott . 'There was no insane fight.
    Secret Superstar Movie First Song 'Main Kaun Hoon' Released

    Secret Superstar Movie First Song 'Main Kaun Hoon' Released

    She takes the help of a burqa in order to hide her identity from her family while recording online videos of her singing. In the video , she can be seen recording her first song while wearing a hijab to restrain from revealing her identity.
    YouTube Rolls Out 'Breaking News' Feed On Desktop Site And Mobile Apps

    YouTube Rolls Out 'Breaking News' Feed On Desktop Site And Mobile Apps

    YouTube has been serving people across the globe from 2005 with billions of videos without getting any sum in return. YouTube has yet to make any official comment on the Breaking News carousel, but expect word to surface next week.
  • Samir Nasri joins Turkish side Antalyaspor

    Samir Nasri joins Turkish side Antalyaspor

    Nasri did go with City on their pre-season tour of the United States but has no future at the club under manager Pep Guardiola. This led to Sevilla not taking up their option to sign the former French worldwide on a permanent basis.
    Qatar files complaint over Saudi threat to passenger flights

    Qatar files complaint over Saudi threat to passenger flights

    Our main goal during the meetings was to explore ways to facilitate the travel of Qatari pilgrims to Saudi Arabia for annual Hajj. Qatari pilgrims started going through the land border on Thursday, according to Saudi-owned al-Arabiya television.
    Stunning Aston Martin DBR1 breaks auction record

    Stunning Aston Martin DBR1 breaks auction record

    The auto came to the finish line first in 1959 in the race at the nürburgring in Germany. This is enough to buy 120 brand-new Aston Martin DB11 supercars from a British showroom.
  • One Dead After Car Hits Bus Shelters In France

    One Dead After Car Hits Bus Shelters In France

    Almost an hour passed between when the first bus stop was slammed into and the second, the police official said. Police advised residents to avoid the Charles Livon Boulevard in Marseille's Vieux-Port, or Old Port, area.
    GOP still wary of Donald Trump

    GOP still wary of Donald Trump

    Some administration officials reached out to business leaders throughout the day to shore up their support amid the controversy. With Trump as president , no one should be optimistic that change will come from the top.
    McLaren Debuts Fuchsia MSO 720S

    McLaren Debuts Fuchsia MSO 720S

    Unfortunately, McLaren is keeping the price of this MSO 720S close to the vest, only stating the 720S' base price of $288,845. White Alcantara floor mats, again with white stitching, complete the theme.
  • Spurs undone by Alonso

    Spurs undone by Alonso

    Chelsea , with summer signing Tiémoué Bakayoko making his debut, also spent much of the second half being forced to defend. Burnley had a fantastic opening to the season after they beat Chelsea 3-2 in their first game of the 2017/18 campaign.
    U.S.  launches probe of China's IP practices

    U.S. launches probe of China's IP practices

    The United States should instead work with China to find consensus and promote healthy trade relations, the ministry said. Bannon pushed China hawks for positions throughout the federal bureaucracy but did not last long enough to oust Susan A.
    Anando Brahma movie review: A horrifying comedy about horror

    Anando Brahma movie review: A horrifying comedy about horror

    Produced by 70 mm Entertainments, the film also stars Vennela Kishore, Shakalaka Shankar, Srinivas Reddy and Tagubothu Ramesh. " Anando Brahma " is horror comedy which comes with a caption "Bhayaniki navvante bhayam" (Fear is scared of laughter).


Intel Launches 8th Generation Chips - Check Out the New Features
That's largely thanks to the four cores packed into each chip, which is a first for Intel's U-series. The mobile CPUs have a TDP of 15W and are the Intel Core i5-8250U, i5-8350U, i7-8550U and i5-8650U.

Ant McPartlin responds to huge support from his fans
We had an hour's conversation then I packed my bag and I went. 'I'm very sorry about the effect it has on partners. The presenter took to Twitter to send a loving message to all of his fans, after receiving so many well wishes.

The Trump Family is Bankrupting the Secret Service, Because Vacations
As a result, the Secret Service is not entirely sure how to carry out its mission for the rest of 2017 without additional funding. President Trump has a total of 42 people under the protection of the Secret Service, including 18 family members.

3 in Preseason AP Poll
K-State finished last season on a hot streak, winning six of its last seven games to end the year with a 9-4 record. The Irish will open up the 2017 season when they host Temple on September 2nd at 3:30pm at Notre Dame Stadium.

U.S. to pause issuing non-immigrant visas in Russia: Embassy
Congress approved sanctions against Russia for meddling in the 2016 U.S. election and for its aggression in Ukraine and Syria. It will be the only place in Russian Federation offering American visa services.