India's Infosys shares up after new chief named

Jun 12, 2014

Shares in Indian outsourcing giant Infosys climbed nearly four percent on Thursday after the company announced a new chief executive who will take over in August.

Infosys, which is based in the southern high-tech city of Bangalore, rose as much as 3.77 percent to 3,298.00 rupees on the Bombay Stock Exchange after the firm said Vishal Sikka, previously with German software giant SAP, would take the helm.

The also said N.R. Narayana Murthy, the co-founder who returned as executive chairman in June last year, would step down from his current role on Saturday.

With the announcement the IT giant seems keen on ending the string of high-profile departures since Murthy returned to the company.

The last big name to quit was president B.G. Srinivas, who was thought to be a frontrunner for the chief executive post before he left the company last month. The Economic Times said he was the 12th senior figure to leave since Murthy returned.

Sikka's appointment means that S.D. Shibulal, the current chief of Infosys, will retire nearly four months earlier than expected.

"I am honored to lead Infosys, an iconic company built by pioneers in the technology industry," Sikka said in a press release from Infosys.

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.

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

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 drops seven percent as top exec quits

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.

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.

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.

Recommended for you

Nokia profits rise after sale of handset division

33 minutes ago

(AP)—Telecommunications and wireless equipment maker Nokia Corp. saw its shares surge on Thursday after it reported higher profits and an improved earnings outlook in the wake of its sale to Microsoft of its troubled handset ...

Swiss drug maker Roche posts 7 percent profit drop

3 hours ago

(AP)—Swiss drugmaker Roche Holding AG on Thursday posted a net profit drop of 7 percent compared with a year ago, weighed down by a strong Swiss franc and charges from one of its diagnostic units.

Cheaper wireless plans cut into AT&T 2Q profit

14 hours ago

(AP)—AT&T Inc. on Wednesday posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

Facebook 2Q earnings, revenue soar (Update)

14 hours ago

(AP)—Facebook is on a roll. The world's largest online social network posted sharply higher earnings on Wednesday as revenue from mobile advertising continued to grow, and more people used it, more often.

Android grabs more tablet market share

16 hours ago

Global sales of tablet computers edged higher in the second quarter, in the slowest growth since 2009, research firm Strategy Analytics said Wednesday.

User comments : 0