Infosys shares trade lower after Nilanjan Roy resigns

At around 9:43 a.m., shares of Infosys were trading 0.59 per cent or Rs 8.8 lower on BSE at Rs 1,479.8 apiece. The market capitalsisation of the company stood at Rs 6,13,434.38 crore at around the same time.

On December 11, after market hours, Infosys informed about the resignation of the CFO and simultaneously informed that Jayesh Sanghrajka would take the position, image- Reuters

Shares of Infosys, India's second-largest IT services provider, traded lower for the second consecutive session on Tuesday, December 12, after its board accepted the resignation of Nilanjan Roy as Chief Financial Officer (CFO) and appointed Jayesh Sanghrajka in his position.

At around 9:43 a.m., shares of Infosys were trading 0.59 per cent or Rs 8.8 lower on BSE at Rs 1,479.8 apiece. The market capitalsisation of the company stood at Rs 6,13,434.38 crore at around the same time.

On December 11, after market hours, Infosys informed about the resignation of the CFO and simultaneously informed that Jayesh Sanghrajka would take the position.

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"Board of Directors has appointed Jayesh Sanghrajka as the Chief Financial Officer (“CFO”) with effect from April 1, 2024," the filing read.

Further, the software services exporter said, "Nilanjan Roy has been the CFO of Infosys since 2018 and has decided to step down to pursue his "personal aspirations "outside of Infosys.

"Given Infosys' leadership and how they have second-rung talent ready, it may not have a big disturbance in terms of operations or margin agenda of the company," a Reuters report said.

Roy's departure is the latest in a series of top-level exits at Infosys, including those of former presidents Ravi Kumar S and Mohit Joshi.

Tracking the changes in the company, global brokerage Morgan Stanley said the resignation of the CFO was unanticipated and could weigh on sentiment in light of past seniority. The brokerage expects the transition to be smooth.

It has maintained an 'overweight' rating on the stock and has given a target of Rs 1,600 apiece.

In October, Infosys announced its July to September quarter numbers, which showed the company's consolidated net profit increased by 4.5 per cent at Rs 6,212 crore. Its revenue grew by 2.8 per cent to Rs 38,994 crore for the second quarter.

The country's second-largest IT company has slashed its annual revenue forecast twice in the past couple of quarters and has forecast FY24 revenue growth of 1 per cent -2.5 per cent, which will be the slowest pace in at least a decade.