Infosys suffered a fall in its market value in the morning trade on Monday after the software services exporter confirmed the departure of director V. Balakrishnan.

The resignation of Mr. Balakrishnan, who was being seen as a candidate to become Infosys' next chief executive officer (CEO), is the eighth senior executive to depart the company since co-founder Narayana Murthy returned to the company as executive chairman in June this year.

Mr. Balakrishnan has the highest profile among the executives who left the company after Mr. Murthy's return. He has previously served the company as chief financial officer (CFO). He has remained the head of several key divisions at the software giant, including consultancy Infosys Lodestone.
ADVERTISEMENT

Reacting negatively to the resignation of Mr. Balakrishnan, shares of Infosys slipped in a positive market, underperforming the broader information technology (IT) benchmark. As of 09.20 a. m. today, the stock was trading at Rs 3,535 a share, 0.5 per cent down; while the BSE IT index was trading at a gain of 0.3 per cent.

Domestic brokerage firm Kotak said Mr. Balakrishnan's departure once again showed the company's inability to retain its core team members. The brokerage added that the impact of the executive's departure could be felt in the medium term.

Analysts, who are still uncertain about the reasons behind Mr. Balakrishnan's resignation, said it was bound to worry investors; while some analysts said it lead to possible management disorder at Infosys.

Source: Top News