Reality Check - Infosys: Resignation blues

The Infosys stock plummeted on Friday, reacting to Vishal Sikka’s resignation. Vishal Sikka — the first external CEO in Infosys — took over the reins of the company in August 2014 and turned around the company in two years. Between 2013-14 and 2015-16, the number of $75-million-plus clients increased to 31 from 24. Attrition was down to 13.6 per cent from 18.7 per cent and employee utilisation improved sharply. Revenue growth too started to recover. Growth that had slipped to 7.1 per cent (in constant currency terms) in 2013-14 rebounded to 13.3 per cent in 2015-16. The company’s achievements on the digital and automation fronts too have been healthy. However, over the last year, the company’s performance has not been up to the mark. Sales volumes suffered and traction in business from top clients slowed. Sikka’s exit could increase problems for the company, given that the top 25/50 clients of Infosys were monitored directly by him.

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