NEW DELHI: Shares of Infosys plunged 4 per cent on Monday on the resignation of Chief Financial Officer (CFO) MD Ranganath.
The company informed stock exchanges that it will 'immediately' commence the search for the next CFO.Following the development, the stock fell 4.03 per cent to hit a low of Rs 1,373.55 on the BSE.
It later recovered, but was still down 2 per cent.
Urmil Shah of IDBI Capital said he would not take Ranga's exit as an indication that more bad news is in the offing for Infosys, but "definitely it is a short term negative for the company and the stock"."Ranga has been instrumental in making sure the financial performance, especially the margin profile and capital allocation, remains quite good in the last few years when there have been a lot of changes at the CEO level.
So, to that extent, it is definitely negative in the short term," Shah told ET Now."But Infosys has demonstrated that it is a fantastic institution and they have managed the changes at the CEO level and seen other senior exits quite well.
So, we believe that it should not have a material impact on the medium to long term performance," Shah added.