Infosys registers Rs 3,398 crore Q2 profit, CFO resigns


Software major Infosys Ltd on Monday announced a 200 percent interim dividend or Rs.10 for each share of Rs.5 at par for first six months (April-September) of fiscal 2015-16.

India’s second biggest outsourcer announced a net profile of Rs.3,398 crore on sales of Rs 15,635 crore while constant currency revenue jumped 6.9 percent sequentially to $2,392 million.

“The board of directors declared an interim dividend of Rs.10 per share. The record date for payment of dividend is October 19,” the company said in a statement in Bengaluru while announcing its financial results for second quarter (July-September) of this fiscal.


Soon after the announcement of a huge profit, the company announced that its chief financial officer (CFO) Rajiv Bansal was resigning.  Infosys said that MD Ranganath will replace Bansal as the new CFO.

Bansal, who has also been the executive vice-president, however, will continue as an advisor to the company’s chief executive Vishal Sikka and the board of directors till 31 December for a smooth transition.

Ranganath, who held leadership positions during his 15-year tenure with the company, is executive vice president and head of strategic operations, responsible for planning, risk management, mergers and acquisitions and corporate marketing.

“Bansal has informed the company of his intention to resign. He will be replaced by M.D. Ranganath at the close of business on Monday,” the IT firm said in a statement after announcing financial results.

Sikka said, “He’s a brilliant CFO and we will miss him even as we respect his decision and wish him continued success in his future endeavours.”

Bansal noted in the statement, “I am sure that Infosys, under the leadership of Vishal, will scale new heights in the times ahead.”

Market analyst Sharmila Joshi said, “Mr Bansal’s resignation has something to do with the negative sentiment because nobody likes to see senior people resign and when you do it on the result day, then the impact on the stock could be more because the focus is on the stock.”

Manish Sonthalia of Motilal Oswa said, “The commentary was very positive… there is no reason why one should not be positive about Infosys.”

Bansal is the third high-profile CFO to quit the IT bellwether in the last four years after V. Balakrishnan and M.D. Mohandas Pai left the company in 2013 and 2011 respectively. Unlike Bansal, they were also directors on the company’s board.

“Over the last 16 months, I have come to know Ranganath as a passionate and balanced leader with ability, knowledge and integrity. We welcome him as our new CFO,” Sikka averred.

Ranganath was also chief risk officer for over five years, implementing the company’s enterprise risk management programme and leading cost optimisation initiatives as senior vice-president in the chairman’s office.

Prior to joining Infosys in 2000, Ranganath was in-charge of treasury, planning and credit functions at the country’s largest non-banking financial firm ICICI Ltd.

A post-graduate from Indian Institute of Management, Ahmedabad (IIM-A), Ranganath holds a master’s degree in technology from the Indian Institute of Technology in Chennai and is an associate member of Certified Practising Accountants in Australia.

The half-yearly dividend, however, is 400 percent less than 600 percent or Rs.30 per share the company gave for same period last fiscal (2014-15).

The blue-chip firm also gave one bonus share for every share after 15 years or 1:1 stock dividend of American Depositary Shares to its global investors and increased its liquidity or floating shares on the bourses.

The company’s ADS are listed and traded on the New York Stock Exchange.


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