May 29 (Bloomberg) -- Infosys Ltd. fell in Mumbai trading, poised for its lowest close in nine months, after a top executive resigned adding to senior management exits from India’s second-largest software services exporter in the past year.
Shares declined 4.8 percent to 2,979.90 rupees, headed for the lowest level since Aug. 21, as of 10:02 a.m. in Mumbai. The stock is the worst performer today on the benchmark S&P BSE Sensex Index.
B.G. Srinivas, who as co-president oversaw units that served the insurance, manufacturing and financial-services segments, has resigned, Infosys said yesterday. His resignation will take effect June 10, the Bengaluru-based company said. The exit comes as Infosys searches for a new chief executive officer to replace retiring co-founder S.D. Shibulal.
The departure of Srinivas “at this late stage, and an external CEO which appears most likely, may create further uncertainty and churn in the short term,” JM Financial Institutional Securities in Mumbai said in a note to clients. “There might be further exits at the top management, which may put at risk, our thesis of turnaround and revenue growth recovery.”
The brokerage cut its rating to hold and lowered estimates for revenue growth and earnings.
Srinivas was seen as a possible candidate for the CEO position, according to JM Financial.
Billionaire co-founder N.R. Narayana Murthy, who returned as chairman in June to help revive revenue growth, has reshuffled top management and aimed to boost margins by trimming costs.
Infosys on April 15 forecast that full-year sales will climb 7 percent to 9 percent in U.S. dollar terms, exceeding the 6-8.3 percent average of six analyst estimates compiled by Bloomberg. It posted a 25 percent jump in fourth-quarter profit, beating analysts’ estimates.
To contact the reporter on this story: Adi Narayan in Mumbai at email@example.com