Infosys : once pride for every young graduate in India: where does this stand today:

Infosys: This is not just a software firm but its much more to Indians and many around the world, may be its the only company which can even takeover other companies during its downfall !!!

Infosys acquires Lodestone for $350 mn

Here below are few reasons for the downfall of a gaint and how it is trying to get back on track.

      Infosys had much more to deal with than with the number game, its one of the best example of creating wealth, customer satisfaction Its a very good example of values and corporate governance. 

      

The company has seen "ramp down" in orders from various accounts and especially in the financial services sector, Chief Executive S.D. Shibulal said. The banking and financial service industry vertical contributed Rs. 3,037crore (out of a total revenue of Rs. 8,852 crore) to the company’s revenues in the fourth quarter.

   

         Contrary to speculation, Infosys gave a guidance for the current fiscal (FY13) but there was disappointment over the fact that growth is expected to be lower than most conservative estimate.

      The company expects FY13 dollar revenues at $7553-7692 million. The FY13 earnings per share guidance is expected at Rs. 158.76-161.4 (at assumed currency rate of INR50.88/USD).

   

      The management sees headwinds from the US and Europe, which accounts for nearly 75% of revenue for Indian IT firms, going ahead. "The year ahead looks challenging for the IT services industry, with slow recovery in the global markets,” said S. D. Shibulal, CEO and Managing Director. 

         Major brokerages have turned negative on the stock. Barclays said the stock can have at least a 10% downside. 

this is the company which grew from 7 members to 155,000 members, a 7$ Billion enterprise, it has to now regain and renew itselt to get back to growth.

Infosys 3.0' strategy that seeks to steer the company towards high-end consulting, innovation and more "non-linear revenue" - revenues growing faster than people costs. Shibulal says he "can clearly see our customers and analysts accepting the strategy", but it is not resonating with clients like PepsiCo yet. The multinational recently outsourced more innovative projects to TCS, which is now working on analytics and speciality applications like transportation optimisation systems.

My take: 

Infy had its foot steps in Europe more than in other parts,  and law of insurance : more members from more regions keeps the company alive, also applies to software firms during economic downtrend.

TCS, CTs had started exploring in Eastern and in Western parts of the planet where infy is yet to explore.

TCS had 52M trade in Canada few years back and today its more than 321M, Infy had never vissioned to go abroad and beyond the limits.

The new CEO's too haven't ride the horse to get into these fields, BDM, and other new booming sectors are being led by PEGA but infy is now just a mere consumer of these products rather than designing and developing them. 

Scenarios like this can cost too much for a company in the profit ratio's.