Shares of Infosys opened over a percent lower on December 12 after the company’s chief financial officer, Nilanjan Roy, stepped down from his post to pursue personal aspirations. The development raised concerns over the rising top-level exits at Infosys and other largecap IT firms.
Following the development, Infosys shares fell 1.35 per cent to hit a low of Rs 1,468.50 on BSE. The scrip recovered a bit and was later trading at Rs 1,479.95, still down 0.57 per cent. The fall on the counter, to an extent, was lower than a 2.7 per cent drop in Infosys American Depositary shares (ADRs) overnight.
Foreign brokerage Morgan Stanley has maintained its overweight stance on the stock with a target price of Rs 1,600 per share. The brokerage reportedly said that the CFO resignation was unexpected and could weigh on sentiment in the light of past senior level exits at the IT firm. The brokerage, as per ET NOW, though expects the transition to e smooth given that 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 places on record its deep sense of appreciation for the services rendered by him and for his contributions to the company,” it said.
Jayesh Sanghrajka has been appointed as the CFO of the second largest domestic IT firm. He is currently Executive Vice President and Deputy Chief Financial Officer.
“Nilanjan will continue to be with Infosys till March 31st, 2024 as CFO. The board of directors placed on record their deep appreciation for Nilanjan Roy and acknowledged his contribution to the company during his tenure as the CFO,” Infosys said.
Infosys share price has fallen nearly 5 per cent in the last one year, significantly underperforming the benchmark Sensex which has gained 13 per cent and the BSE IT index which has jumped 17 per cent in the same period.
For Q2FY24, Infosys reported a 3.2 per cent year-on-year rise in its consolidated net profit (attributable to owners of the company) at Rs 6,212 crore.
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