News

Published: December 12, 2023
Updated: December 12, 2023

Infosys Faces Market Headwinds as CFO Nilanjan Roy Steps Down

Tech giant Infosys encountered a 3% dip in its US-listed ADRs on Monday, December 11, coinciding with the resignation of CFO Nilanjan Roy, effective March 31. The announcement prompted shifts in the market dynamics, raising concerns about the company's financial future.

Leadership Transition:

In response to Roy's departure, Infosys swiftly named Jayesh Sanghrajka as the new CFO. Sanghrajka, previously the deputy CFO, brings over 18 years of experience at Infosys and holds a chartered accountant title. The transition aims to leverage his extensive expertise to steer the finance function to greater heights.

CEO's Perspective:

Salil Parekh, CEO & MD of Infosys, expressed confidence in Sanghrajka's abilities, highlighting his leadership in multiple finance portfolios. Parekh also acknowledged Nilanjan Roy's commendable five-year tenure, wishing him success in his future endeavours.

Market Performance:

Infosys' ADRs experienced a 6.5% decline in October after Q2 results and an 8.4% drop on July 20 following a reduction in revenue guidance. Despite a revised downward revenue projection for FY24, Infosys maintains an operating margin guidance of 20-22%. This decision hints at potential cost-cutting measures amid a challenging second half.

Stock Analysis:

During Monday's trading session, Infosys shares closed at ₹1,488.50 on the NSE, marking a 0.2% decline. Notably, the stock underperformed the Nifty50 benchmark, recording a 1.3% loss compared to the index's 16% gain from January to the present.

Infosys faces a pivotal moment with leadership changes and market challenges. The appointment of Jayesh Sanghrajka signals a strategic move to navigate uncertainties and maintain financial stability. As the industry watches, Infosys must balance operational efficiency and fiscal prudence to sustain its standing in the ever-evolving tech landscape.