Infosys marginally in red as BPO unit sacks CFO Abraham Mathews

NEW DELHI: Infosys Ltd slipped pared its morning gains and turned negative in trade on Wednesday, after Infosys BPO Ltd has asked its Chief Financial Officer ( CFO) Abraham Mathews to resign from the service for not complying with the code of conduct of the company.

While Infosys BPO CEO Gautam Thakkar resigned on moral grounds. Infosys, widely respected for its transparency and corporate governance standards, appointed veteran executive Anup Uppadhayay as new CEO replacing Gautam Thakkar and Deepak Bhalla as CFO.

At 09:25 a.m.; Infosys was trading 0.2 per cent lower at Rs 4169. It hit a low of Rs 4165 and a high of Rs 4182 in trade today.

As per media reports, Mathews was removed due to certain financial irregularities and a failure of a part of his fiduciary duties, which were discovered by the management about two to three weeks ago.

However, analysts are of the view that the exit will not have any material impact on the earnings of the company and the stock still remains on the top buy list of most analysts.

"We believe that it won't have any detrimental impact on the earnings of the company. We recommend Accumulate rating with a price target of Rs 4700," Angel Broking said in a report.