Investors welcome Murthy''s come back; concern over performance
Bangalore, June 15 (PTI) Infosys shareholders today welcomed the re-appointment of company''s co-founder N R Narayana Murthy as Executive Chairman, but expressed disappointment over the firm''s performance.
Worried over falling profits, the shareholders raised concerns over rising attrition rate and the company losing focus to make profit as some of the other IT companies were doing.
At the 32nd Annual General Meeting here, K Narayan, a shareholder, was critical of the company''s "failure" to identify an eligible candidate to be appointed as Executive Chairman but forced the return of Murthy who was planning a peaceful retired life.
He said Infosys was paying more salary to their employees compared to some other leading software companies. "You have raised the salaries but are the employees delivering. Infosys should bring down its cost on employees to make profits."
C N Gopalakrishnan, another investor, said Infosys was not making enough acquisition to strengthen its business despite having huge liquid assets. He demanded more dividend payout and complained that the company had not issued bonus shares since last six years.
Another investor said Infosys had lost its strength of attracting top talent and sought a reply on the reason for 5,000 out of 23,000 persons offered jobs last fiscal not turning up.
A shareholder from Mumbai welcomed Murthy by saying, "We are elated and happy to see Murthy back at the helm of affairs. We will not mind even welcoming his daughter as his son thirty-year-old Rohan Murty, who was appointed as his Executive Assistant," she said.
Replying to shareholders, Murthy said the company would strive hard to rectify its mistake of losing focus on its outsourcing business, a bread and butter business for Infosys.
Murthy said the predictability of company''s earnings forecast has weakened during the last couple of years and it has resulted in its inability to provide earnings guidance to the market. "We will refocus on building a more predictable earning model in the medium term," he added.
Murthy assured the shareholders that he would dedicate himself for company''s growth. .