Mastek, the Mumbai-based software services firm valued at approximately ₹8,400 crore (around $1 billion), has announced a significant leadership change. Hiral Chandrana, who has served as the Group CEO for the past three years, has resigned to explore new opportunities. Chandrana has also stepped down from her positions on the Boards of the company’s subsidiaries.
Effective August 10, Umang Nahate will assume the role of interim CEO and non-executive director, following the Board’s acceptance of Chandrana’s resignation on Friday.
This leadership shake-up comes in the wake of Mastek’s profitability hitting a multi-year low. For the fiscal year ending March 2024, the company reported a 16% return on equity. However, in the subsequent quarter ending June 2024, its earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped to 15.2%, the lowest level since December 2019.
The decline in profitability was attributed to delays in securing deals in the United States, which accounts for 27.2% of Mastek’s revenue, and payment delays in the Middle East market, which have adversely affected the company’s earnings.
Before the announcement of Chandrana’s resignation, Mastek’s shares fell by 3% on August 9. Despite this recent decline, the stock has experienced a year-to-date gain of over 34%.
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