India's Infosys drops seven percent as top exec quits

May 29, 2014

Shares in Indian outsourcing giant Infosys sank by seven percent on Thursday after the latest departure of one of the company's senior managers.

The resignation of B.G. Srinivas, who had been seen as one of the frontrunners to replace chief executive officer S.D. Shibulal when he retires early next year, was announced in a statement late Wednesday.

Shares of Infosys, which is based in the southern high-tech city of Bangalore, fell 7.47 percent to 2,935.00 rupees before recovering marginally to 2,964.00 on the Bombay Stock Exchange.

Srinivas, who was a member of the Infosys board, had been promoted to head up several several of the company's divisions earlier this year.

But he became the latest in a string of departures from the company since Infosys co-founder N.R. Narayana Murthy returned to the company as executive chairman in June last year.

The Economic Times said that Srinivas was the 12th senior figure to leave the company since Murthy's return.

In April, the Nasdaq-listed firm announced that its consolidated net profit had surged 25 percent in the January-March quarter, beating market estimates.

Infosys—created three decades ago by Murthy and six others around a kitchen table—has been losing market share to rivals such as Tata Consultancy Services and HCL.

Last October, Infosys said it would pay $34 million to the US government to settle an investigation into alleged visa fraud by the company.

Many of India's IT outsourcing firms have reported subdued growth in recent years due to the .

Explore further: India's Infosys sees profit leap by 25%, beats forecasts

add to favorites email to friend print save as pdf

Related Stories

India's Infosys sees weaker sales, shares tank

Mar 13, 2014

Shares of Indian outsourcing giant Infosys slid almost nine percent Thursday after the firm warned that quarterly revenues may be weaker-than-expected following project cancellations.

Infosys profits up slightly despite currency woes

Jul 12, 2013

Indian software outsourcing giant Infosys posted slightly higher quarterly profit Friday and maintained its revenue growth forecast despite the weak rupee and uncertainty about U.S. visas for its employees.

India's Infosys recalls founder as woes mount

Jun 01, 2013

Infosys on Saturday reappointed co-founder N.R. Narayana Murthy to lead the Indian outsourcing giant two years after he retired, as the company grapples with weak earnings and falling market share.

Recommended for you

Sony's quarterly loss balloons on mobile woes

1 hour ago

Sony's losses ballooned to 136 billion yen ($1.2 billion) last quarter as the Japanese electronics and entertainment company's troubled mobile phone division reported huge red ink.

Will Apple Pay be mobile pay's kick-start?

8 hours ago

If anyone can get us to use our smartphones as wallets, it's Apple. That's what experts think about the recent launch of Apple Pay, the first mobile wallet to work on an iPhone.

Google execs discuss regulation, innovation and bobble-heads

10 hours ago

Eric Schmidt and Jonathan Rosenberg help run Google, one of the world's best-known, most successful - and most controversial - companies. They've just published a new book, "How Google Works," a guide to managing what they ...

LinkedIn reports 3Q loss but sales climb

11 hours ago

LinkedIn Corp. posted a third-quarter loss on Thursday, but its results were better than expected as revenue grew sharply, sending shares of the online professional networking service higher in extended trading.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.