After Cognizant, Chairman of another IT Major Steps down! What are the reasons? Report

The chairman of IT Major HCL Technologies, Shiv Nadar recently made a big announcemen regarding his position in the firm. He announced that he will be stepping down from the position of the chairman of the Board of Directors. Roshni Nadar Malhotra, his daughter, who is currently the non- executive director has been appointed as the chairperson of the Board of Directors. The change of guard is set to come into effect from July 17, 2020.

Shiv Nadar will continue to be the Managing Director and he Chief Strategy officer of the company according to the statement released by the firm on Friday. 

75-year old Shiv Nadar founded HCL along with Ajai Chowdry, Arjun Malhotra and five others. 

“We are living in unprecedented times where organizations and people across geographies are dealing with challenges related to the pandemic. However, this has also pushed businesses to accept the pandemic as a catalyst for change and look at building agility and resilience into every level of their organization," Shiv Nadar said in a statement while announcing the company's financial results for the June quarter of fiscal year 2020-21.

He added, "HCL, along with its partners, is helping customers embrace digital transformation and innovation to emerge stronger in this new normal. I am confident that, with decisive action leveraging digital momentum and sustainable business practices, we will together emerge as stronger entities.”

According to Economic Times, “HCL Technologies reported a 7.3% drop in net profit at Rs. 2925 crore for the three months ending 30 June 2020 as compared to the same period last year. On a year-on-year basis, the profit was up 31.7%. This came on back of revenues of Rs. 17,841 crore, down 4% sequentially and up 8.6% year-on-year.”

The corona induced economic crisis has had a major impact on Indian IT firms since their global customers have reduced IT spending and put several projects on hold.