Infosys CFO steps down

12 Oct 2015 | Written by Shiladitya ; Edited by Vaneet Randhawa

The Chief Financial Officer of IT giant Infosys, Rajiv Bansal who took over in 2012, stepped down on 12 October 2015, and is set to resign from services of the company effective from 31 December 2015.

The Executive Vice President of Infosys, Ranganath Dwarkanath Mavinakere is set to take over as the CFO.

The announcement came after Infosys' second quarter earnings exceeded expectations.

In context: Infosys second quarter results

Q2: 1Infosys soars past expectations

Infosys soared past expectations in the July-September 2015-16 quarter, with net profit rising by 12% from Rs.3,030 in the previous quarter to Rs.3,398 crore.

The company's consolidated revenue increased by 8.9% to stand at Rs.15,635 crore.

Infosys' dollar revenue also increased by 6%- from $2,256 million to $2,392 million, and would have been higher had a $23 million client not terminated a contract.

Q2: 2Infosys' Q2 achievements

In the July-September quarter, Infosys added 82 clients, taking their total up to 1,011, with 3 clients in the $75 million bracket, and 1 in the $50 million bracket. It signed 5 deals worth $983 million.

It added 8,453 employers, taking the total employees up to 1.9 lakh people.

It declared an interim dividend of Rs.10/share.

Exchange gain for the quarter was $800 million.

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Q2: 3Growth in liquid assets

Infosys' liquid assets, as of 30 September 2015, stood at Rs.32,099 crore, up from last quarter's Rs.30,225 crore.

Per capita income increased 2.6% in reported terms, and 3.4% in constant currency terms.

Goods and Services Tax Network (GSTN) in India awarded a Rs.1,380 crore contract to Infosys to build and maintain GSTN system for 5 years.

Share prices touched Rs.1219 before falling to Rs.1108.90.

What is attrition rate?

A company's attrition rate determines the percentage of employees leaving a business over a specified period of time. It includes both voluntary and involuntary termination of employment including retirements, dismissals, layoffs and resignations.

Q2: 4Downsides of July-September quarter

Inspite of Infosys' phenomenal growth in the July-September quarter of 2015, there were certain downsides.

Attrition rate or employee turnover rate for the quarter inched up to 19.9% from 19.2% in the previous quarter.

Brokerage house Kotak Securities feels a big area of concern could be the attrition in senior management of Infosys.

Tax expenses also surged by 18% in the July-September quarter.

12 Oct 2015Infosys CFO steps down

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Who is Rajiv Bansal?

Rajiv Bansal, who took over as Infosys' CFO in October 2012, had been associated with the company for 15 years, and holds a M.Tech degree from IIT Madras and a MBA degree from IIM Ahmedabad.

14 Jan 2016Infosys Q3 results

Infosys announced a 1.97% quarter-on-quarter (qoq) and 6.6% year-on-year (yoy) growth in its net profit figures to Rs.3,465 crore for the quarter that ended December 30,2015.

Infosys' consolidated earnings took a leap 15.26 per cent yoy and 1.70 per cent qoq to Rs.15,902 crore.

However, the operating profit of the company declined a little to Rs.3,959 crore for the quarter.

16 Apr 2016Infosys beats market estimates; Q4 net up 16.2% at Rs.3,597 crores

Infosys CEO declared a 16% rise in the fourth-quarter net profit of the company.

Its consolidated net profit rose from Rs.3,097 crores (2015) to Rs.3,597 crores ($540.07 million) in its fiscal fourth quarter to March 31.

This is the fourth quarter where Infosys has beaten the analysts' estimation.

The company's revenue rose to Rs.16,550 crore i.e. 23.4 per cent.

3 new Presidents for Infosys

After the Q4 earnings announcement, Infosys declared Mohit Joshi, Ravi Kumar S and Sandeep Dadlani as new Presidents of the company (they were previously designated as executive vice Presidents).