Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

infosys crisis

562 views

Published on

infosys is the 2nd largest indian i.t company.if something happens to infosys affects indian economy.it affects indian gdp.it affects share market.when vishal sikka resign as a ceo level from infosys what happens inside and outside of the infosys .look at this slides you will know everything about this.like me and follow me.

Published in: Business
  • Be the first to comment

infosys crisis

  1. 1. Why we have selected?  Infosys more commonly referred as IT giant in India is a prime “economic backbone of India” & has veto power to move government.  Infosys is the second largest Indian IT firm by 2016 revenue. On January 12,2017, its market capitalisation was $ 34.38 billion.  Directly Contributes GDP about 8.36%. This indicates that out of total country's turnover, 8.36% is in the real estate turnover. Through Sikka's resign it affected on stakeholder & people were moving back.  Indirect contribution to GDP, was the real estate money goes to multiple outlets & circulates multiple times.
  2. 2. Brief about company  It is IT services & IT consulting. It has its headquarters in Bengaluru, India. It served worldwide.  Trade as: BSE, NSE, CNX Nifty constituent.  Established: 7 July 1981, 36 years ago  Revenue: US$10.208 billion(2017)  Operating income: US $ 2.520 billion  Profit: US $ 2.140 billion  Total assets & equity: US$ 12.854 billion & US$ 10.637 billion  Number of employees: 2,00,364(march17)
  3. 3. What is Corporate governance? Corporate governance is the system of rules, practices and processes by which a company is directed and controlled Clash in culture at Infosys, ,frugal salary ,key low lifestyle vs globally benchmark compansation severance structure has leads to disturbance in the company Lapses of corporate governance in respect to the leadership issue in the company
  4. 4. Problems faced by company due to exit of Vishal Sikka  Sikka’s resignation has left the company with another messy problem of finding someone willing to replace him.  The company's last CEO hunt in 2014 was a major challenge with Sikka being the first chief appointed from outside the group of founders.  Though Sikka has led efforts to diversify Infosys into more lucrative new areas, like cloud, automation & Artificial intelligence.  It happened also due to Sikka asked raised in compensation 3times more to $7 from $11 million in 2016.  Sudden resignation fall more than 12% shares.
  5. 5. Graphical data after effects
  6. 6. Pros & Cons by the company as per Economic prospective  Company faces recruitment headache.  Inflexion point in India for corporate governance.  Brokerage downgrade up to price 850 from 940.  Lost nearly rupees 34000 crore in market capitalisation.  Negative publicity created due to this crises.  20% stock fallen down.  Company purchase 11.3 crore share back from investors at rupees 1,150 per share it was planned up to 13000 crore to reward CEO & secure reputation in market of company.  Offer price nearly 25% in premium & closing price of rupees 923 on BSE.  It reflects 9.6% crash in its shares price, & 5% acceptance ratio.  For retailers the acceptance ratio is 59%.
  7. 7. New strategies made after Nilekhani Returns as CEO  Immediate goal is to bring stability & calmness to the organisation.  Focus on the search for a new CEO.  Look at the long-term corporate governance structure.  Focus on the boards relationship with murthy.  The approach on recent investigation.  2% stock raisin it increase from rupees 940-950.
  8. 8. THANK YOU! Prepared by: Kushal shah Saurav Pandey Urvi shah

×