L&T's AM Naik joins Mindtree board as non-executive chairman

A day after annual general meeting (AGM), Mindtree board on Wednesday approved the appointment of retired L&T chairman Anil Manibhai Naik (AM Naik) as the non-executive chairman of the company with effect from July 18, 2019.

"The nomination and remuneration committee and the board of directors of the company at their meeting held on July 17, 2019, have appointed Anilkumar Manibhai Naik as the non-executive chairman of the company with effect from July 18," IT services firm Mindtree said in a filing to the Bombay Stock Exchange.

The business tycoon AM Naik served the largest engineering conglomerate of India for over 54 years, 14 of them as the chairman. He was conferred India's second highest civilian award, the Padma Vibhushan, from the President of India, Ram Nath Kovind on March 16.

Also Read: Mindtree Q1 profit declines 41% to Rs 92.7 crore, revenue rises 12%

Last month, Mindtree board had approved induction of five L&T's nominees as directors into the company's board, including L&T's Chief Executive Officer (CEO) and Managing Director S N Subrahmanyan and its Chief Financial Officer (CFO) Ramamurthi Shankar Raman. Three new non-executive directors from L&T - Subrahmanyan, Raman and Jayant Patil, Senior Vice President of L&T's defence business, as well as two additional independent directors Prasanna Rangacharya Mysore and Deepa Wadhwa - will join the board of Mindtree.

The board also approved quarterly financial results for the quarter ended June 30, 2019. Mindtree reported a net profit of Rs 92.70 crore in Q1 FY20, down 41.4 per cent year-on-year, while revenue grew by 11.9 per cent y-o-y to Rs 1,834.20 crore. The company reported constant currency growth of 10.3 per cent on a y-o-y basis.

Also Read: Mindtree now under the bigger tree of L&T, says CEO Subrahmanyan at the AGM

L&T has acquired 60.06 per cent of the total shareholding of Mindtree and has been categorised as promoter pursuant to approvals under SEBI (issue of Capital and Disclosure Requirements) Regulations, 2018. The development came within months of Mindtree rejecting a hostile takeover bid from the L&T conglomerate, saying that it will not be in the interest of the company or its shareholders.

Ahead of announcement, shares of Mindtree closed trade at Rs 751.95 apiece, up 0.35 per cent, on the Bombay Stock Exchange on Wednesday.

Edited by Chitranjan Kumar