Shares of Mastek Ltd fell 2 per cent in Thursday's trade after Arun Agarwal tendered his resignation as Global Financial Officer (CFO), Agarwal, a key managerial personnel of the IT firm, would continue to support during the next few months of the transition period. Mastek said it has started the process of finding a suitable replacement.
The stock fell 1.55 per cent to hit a low of Rs 3,202.55 on BSE.
"As the company begins the process of finding a suitable replacement, Mr. Arun Agarwal will continue to support during the next few months of the transition period," Mastek told stock exchanges BSE and NSE.
In his resignation letter to Mastek's Global CEO Umang Nahata, Agarwal said: "First and foremost, I am incredibly thankful to Mastek for providing an opportunity to work with such an incredible organization. I truly cherish my journey of last 8 years where we have built IT Service portfolio of Mastek post demerger with Majesco and delivered consistent and market leading performance backed by strong governance and transparent culture." "I wish Mastek all the success and glory, however, I have decided to embark upon another journey and hence would like to officially resign from my duty as Global CFO of Mastek. As we always say, once a Mastekeer, always a Mastekeer, I am fully committed to ensure there is a proper transition and handover. Thanks again for all your support and trust," he said.
Sharekhan in an October note said Mastek was confident of absorbing the full impact of wage hike in Q3 through multiple margin levers and report good margin performance in Q3 and Q4.
It felt Mastek was on track to achieve industry-leading growth, given the strong start to FY25 and supported by the growth in North America and continued expansion in the UK, as well as strong momentum in healthcare and other global verticals.
It suggested a revised target price of Rs 3,610 for the stock.
For the September quarter Mastek reported 74.6 per cent YoY rise in net profit at Rs 116.90 crore on 13.3 per cent YoY rise in sales at Rs 867.40 crore. Ebitda margin for the quarter came in at 16.5 per cent, up 125 basis points QoQ or 43 basis points YoY.