The Mumbai-based company informed the stock exchanges that Hiral Chandrana has resigned as group chief executive, after a three-year stint with the company, to pursue other opportunities. Chandrana has also resigned from the board of the company’s subsidiaries.
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Umang Nahate will take over as interim CEO and non-executive director from August 10, after the Board accepted Chandran’s resignation on Friday.
Prior to the announcement, Mastek shares fell 3% on August 9. The stock has been under pressure over the past month, while year-to-date gains stand at more than 34%.
Mastek saw a sharp drop in profitability in the last first quarter ended June 2024
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 15.2%, the lowest level since December 2019.
In its call with analysts after the earnings presentation, management attributed the incident to delays in some deals in the United States, which contribute 27.2% of the company’s revenue. There were also delays in payments in the Middle East market, which affected the company’s results.
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In a recent conversation with CNBC-TV18, Chandrana highlighted the surge in deal flow in the last few quarters. However, Mastek’s return on equity fell to 16.7% in the year ended March 2024, lower than in the first year of the pandemic.
You can watch Chandrana’s last interview before resigning here:
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