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HCL Infosystems tumbles after chief resigns

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Capital Market
Last Updated : Dec 08 2014 | 9:39 PM IST

HCL Infosystems fell 7.64% to Rs 59.85 at 12:50 IST on BSE after the company said that Harshavardhan Madhav Chitale has resigned as managing director & CEO and as director of the company.

The announcement was made during trading hours today, 8 December 2014.

Meanwhile, the BSE Sensex was down 211.53 points, or 0.74%, to 28,246.57.

On BSE, so far 5.44 lakh shares were traded in the counter, compared with an average volume of 6.34 lakh shares in the past one quarter.

The stock hit a high of Rs 65.20 and a low of Rs 59.25 so far during the day. The stock hit a 52-week high of Rs 94.50 on 22 September 2014. The stock hit a 52-week low of Rs 19.05 on 18 December 2013.

The stock had underperformed the market over the past one month till 5 December 2014, falling 14.85% compared with 1.94% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 15.02% as against Sensex's 5.30% rise.

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The small-cap company has an equity capital of Rs 44.58 crore. Face value per share is Rs 2.

The board has in its meeting held on 8 December 2014, approved Chitale's resignation effective close of business hours on 31 December 2014. The company did not disclose the reason for Chitale's resignation.

Further, the company has informed that Premkumar Seshadri, the director and executive vice-chairman has been appointed as managing director of the company with effect from 1 January 2015. His designation with effect from 1 January 2015 will be 'executive vice-chairman & managing director'.

On a consolidated basis, HCL Infosystems reported a net loss of Rs 45.26 crore in Q1 September 2014, lower than net loss of Rs 72.37 crore in Q4 June 2014. Net sales fell 4.40% to Rs 1682.68 crore in Q1 September 2014 over Q4 June 2014.

HCL Infosystems is India's premier distribution and IT services and solutions company.

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First Published: Dec 08 2014 | 12:47 PM IST

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