BENGALURU: Shiv Nadar who co-founded India’s leading IT services firm HCL Technologies in 1975 has stepped down as the Managing Director and board member of the company.
He will be the Chairman Emeritus and strategic advisor to the board. Nadar’s daughter Roshni Nadar Malhotra, who was appointed as the Chairperson last year, will continue in her role. HCL Tech CEO C Vijayakumar will take over as the company Managing Director, the management said on Monday.
Nadar had co-founded HCL Tech more than four decades ago primarily as a computer hardware company. The Noida-headquartered firm has crossed more than $10 billion revenue in 2021.
"Shiv Nadar, Chief Strategy Officer & Managing Director of the Company, on completing 76 years of age, has tendered his resignation as the Managing Director as well as the Director of the company with effect from close of business hours on July 19, 2021,” the tech firm informed the stock exchanges in a filing.
The IT veteran earlier attempted to sell digital calculators through his business Microcomp and later founded HCL Tech with seven other colleagues with an investment of Rs 1.8 lakh. The firm later expanded to Singapore and sold IT hardware. Nadar currently owns nearly 60% shareholding in the company.
Meanwhile, the company’s revenue for Q 1, FY22 grew by 2.2% sequentially at Rs 20,068 crore whereas earnings before income and tax (EBIT) declined by 2.1% at 19.6%, the lower end of the margin guidance that the company had provided earlier.
The company said that the impact of one-time bonuses handed over to its employees during the June quarter worth Rs 728 crore wasn’t factored in while calculating the profitability.
The company has been able to maintain a healthy cash flow of $ 2.05 billion despite a dividend payout of Rs 4,344 crore.
HCL’s contract value for the June quarter stood at $1.66 bn, up 37% y-o-y although the deal value almost halved sequentially. The deal-mix constituted of eight large services and four deal wins.
Rs 728 crore Firm paid bonus in June quarter