Infosys board member V Balakrishnan resigns - 8th big exit in 7 months - Angel Broking

Views of Ms. Ankita Somani (Research Analyst - IT, Angel Broking)

Infosys board member V Balakrishnan resigns - 8th big exit in 7 months:

"Infosys has announced the resignation of Director V. Balakrishnan, who was widely tipped to be in the race for becoming the company's next chief executive officer when the incumbent S.D. Shibulal retires in 2015. The resignation is effective December 31, 2013. Mr. Balakrishnan headed Infosys BPO, Finacle and India Business Unit. He was also the chairman of Lodestone, a consulting company Infosys acquired in September 2012. Mr. Balakrishnan had also served as the firm's chief financial officer earlier. Infosys has been witnessing an exodus of its senior-level executives in the past few months. The exits come amidst organizational restructuring that Mr. Murthy is overseeing after returning to revive the sagging fortunes of the company in June. We believe that exit of Mr. Balakrishnan will not make any material impact at a business level as he was not heading a very big chunk of the company's revenues but the development does indicate that there is a severe management transition happening in the company. Though the impact of top management resignations at Infosys will not immediately make an impact to the topline of Infosys, it may have some effect over a medium term. Senior level exits remain a concern with the company and we maintain our Neutral rating on the stock."

Source : Equity Bulls

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