The dust is far from settling in Infosys: Analysts

The concerns raised by the Infosys’ founders are far from settling even after the firm's attempts to draw a line under the matter.

According to the analysts, the problem is more of a difference in perceptions between the management and founders, and they don't expect it to leave any lasting impact on the company.

Cofounder NR Narayana Murthy said that corporate governance at the company had weakened and that the out-size severance pay handed out to its departing chief financial officer could raise doubts whether that was "hush money”.

A conference was held in Mumbai by the Infosys board and there it attempted to address the concerns and stated that there were "cultural differences, with the founders.

Analyst believed that the battle could drag on for a few more months. But few expect it to be long-term concern.

"Over the last week, we haven't seen an impact on the stock. If the governance issues are simply a matter of perception on whether certain decisions should be taken, which it seems to be, then the street won't care. But if it begins to have an operational impact on the company, then there will be a problem,” an analyst at an Indian brokerage, told ET.

Another analyst said he was less worried about the founders and far more concerned about the statements being made by Infosys' former executives such as TV Mohandas Pai and V Balakrishnan.