How would it mean further dip in Infy's earnings ? Would the earnings from Lodestone not bring credit to Infosys ?
The eps may go down in two cases:
1. Lodestone is a loss-making firm.
2. Lodestone was bought for a high price. Don't forget that Lodestone's acquisition will bring down Infosys' cash balance and hence the company's interest income will go down.
Every Rs 100 worth of cash gives Infosys around Rs 5-6 of post-tax interest income.