Last updated: Dec 12, 2023 10:49 IST
Infosys share price falls 1% due to the resignation of CFO Nilanjan Roy.
Shares of Infosys opened over a percent lower on December 12 after the company's chief financial officer Nilanjan Roy resigned
Shares of Infosys opened over a percent lower on December 12 after the company's chief financial officer, Nilanjan Roy, resigned from his position to pursue personal ambitions. The development raised concerns over rising top-level exits at Infosys and other major IT companies.
Following the development, shares of Infosys fell 1.35 percent to hit a low of Rs 1,468.50 on BSE. The scrip recovered somewhat and later traded at Rs 1,479.95, still down 0.57 percent. The decline on the counter was to some extent lower than the 2.7 percent decline in Infosys American Depositary shares (ADRs) overnight.
Foreign broker Morgan Stanley maintained its overweight stance on the stock with a price target of Rs 1,600 per share. The brokerage reportedly said the CFO's resignation was unexpected and could weigh on sentiment in light of previous senior-level exits at the IT firm. However, according to ET NOW, the brokerage expects the transition to go smoothly, as the role has been filled by an internal candidate.
Roy's last date with the company would be March 31, 2024, Infosys said. “The company expresses its deep appreciation for the services he has provided and his contributions to the company,” the report said.
Jayesh Sanghrajka has been appointed as CFO of the second largest domestic IT company. He currently serves as Executive Vice President and Deputy Chief Financial Officer.
“Nilanjan will remain with Infosys as CFO until March 31, 2024. The board expressed its deep appreciation to Nilanjan Roy and recognized his contribution to the company during his tenure as CFO,” Infosys said.
Infosys' share price has fallen nearly 5 percent in the past year, significantly underperforming the benchmark Sensex, which has risen 13 percent, and the BSE IT index, which has risen 17 percent over the same period.
For Q2FY24, Infosys reported a 3.2 percent year-on-year increase in consolidated net profit (attributable to the company's owners) at Rs 6,212 crore.