Infosys’ ADRs fall over 3% after Q2 results as CFO Nilanjan Roy quits
Shares of tech major Infosys, listed on the US stock market, declined more than 3% during the opening trade on Monday, December 11, followed by the announcement of Nilanjan Roy’s resignation from the position of Chief Financial Officer (CFO) at Infosys, with his last day in office set for March 31.
In a recent filing with the stock exchange, the Bengaluru-based information technology firm announced the appointment of Jayesh Sanghrajka as the successor to Nilanjan Roy, who has served as the Chief Financial Officer (CFO) since 2018.
Nilanjan Roy has chosen to step down to pursue personal aspirations outside of Infosys. Jayesh Sanghrajka, previously the deputy CFO, will now assume the role.
“I am delighted to announce that Jayesh will take over as Chief Financial Officer. As Deputy CFO, he has been leading multiple portfolios in the finance function for several years now and his depth of experience and knowledge will serve us well to take the function to greater heights. I would also like to express my deep appreciation for Nilanjan for ably leading the function over the last five years and wish him the very best for his future endeavors.” said Salil Parekh, CEO & MD, Infosys.
Sanghrajka brings to the table an impressive tenure of over 18 years at Infosys, spanning two distinct periods, during which he has excelled in diverse leadership positions. Currently serving as the Executive Vice-President and Deputy Chief Financial Officer, he boasts a wealth of over 25 years of professional expertise and holds the prestigious title of a chartered accountant.
In October of this year, Infosys’ American Depositary Receipts (ADRs) experienced a 6.5% decline following the release of its Q2 results. Nevertheless, the downturn was more pronounced after Q1, with a steeper drop of 8.4% on July 20, triggered by the company’s reduction in revenue guidance.
Infosys, despite revising its revenue guidance downward for the second time in FY24, has chosen to uphold the operating margin guidance within the range of 20-22% for the fiscal year. This decision to maintain margins in the face of reduced revenue projections hints at a challenging second half for the company, potentially prompting the exploration of cost-cutting measures in the future.
In Monday’s trading session, Infosys shares ended at ₹1,488.50 on the NSE, registering a 0.2% decline. Notably, the stock has significantly underperformed the benchmark index throughout the year. While the Nifty50 has recorded a 16% gain from January to the present, the stock has incurred a 1.3% loss during the same period.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world ???? Click here to know more.
Download The Mint News App to get Daily Market Updates.
Published: 11 Dec 2023, 10:18 PM IST
