Mid-cap IT-services company Mindtree on Monday announced a top-level organisational rejig naming Rostow Ravanan as the CEO and managing director, while incumbent CEO Krishnakumar Natarajan has been elevated to the position of executive chairman.
Subroto Bagchi will step down as executive chairman, but continues on the board as a non-executive director, the Bengaluru-based software-services firm said in a statement. “This is the culmination of a year-long succession planning exercise that the board had undertaken after carefully considering several candidates. We are very happy with the process and the outcome,” said Apurva Purohit, independent director and chairperson of the nomination and remuneration committee of the board. All new appointments will be effective from April 1, 2016.
Ravanan (44) moved out from his earlier role as the chief financial officer of the company in April 2014 and took over as the head of Europe, service lines and key accounts.
Mindtree also announced its quarterly earnings on Monday. In dollar-terms, net profit edged up 0.2 percent year-on-year to $22.8 million, (a 5.9 percent decline sequentially), for the quarter ended December 2015. Revenues rose 24.8 percent year-on-year to $184.4 million. Mindtree had 294 active clients and 16,243 employees (addition of 1,306 employees at gross level) as of December 31, 2015.
Shares of Mindtree closed at Rs 1,469.60, down 4.51 percent on the Bombay Stock Exchange on Monday. The 30-share benchmark Sensex index ended the day down by 1.09 percent.
Mindtree was one of the first venture capitalist-backed software services companies in India started by Natarajan, Bagchi, Ravanan, along with seven co-founders from Wipro, Cambridge Technology Partners and Lucent. Founder of Cafe Coffee Day VG Siddhartha, along with his two group companies—Coffee Day Enterprises Pvt Ltd and Coffee Day Trading Ltd—is the single-largest shareholder in Mindtree.