The stock market was not surprised by the choice of Mr K.V. Kamath as the Chairman of Infosys. But there is confusion as to what would happen to the core values that the company is known for.

Analysts views

Analysts said that the name change from Infosys Technologies Ltd to just Infosys Ltd appeared to signify that the company wants to be viewed not just as an IT vendor but as a consulting firm. Infosys has been in the consulting business for close to a decade now.

A Goldman Sachs report on the change of guard said that Infosys would be back to business with the top management focussing on strategy execution. It also said that the company would be able to grow its revenues and net profit at 24 and 23 per cent respectively over the next two years.

“They have two different personalities in Mr Kamath and Mr Shibulal, the former to take care of strategic direction and the latter for operations,” said Mr Vijay Gautam, IT Analyst, Jaypee Capital. There are conflicting reactions to the style of functioning that Infosys is expected to show in the future. Some analysts said that its traditional conservative approach of ‘under promise and over deliver' would not see much of a change. “They were always focussed more on margins than on revenues,” said an IT analyst at a brokerage.

Elara Capital said in its report on Infosys that Mr Kamath should be able to inject some aggressiveness into Infosys' now familiar dour style of operating.

The street is hoping that the company would deploy the over $3 billion cash in its balance sheet to fund acquisitions and grow. But the company's rationale of having cash levels equal to 12-18 months of operating expenses in the aftermath of the credit crisis cannot be questioned.

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