UPDATE 1-Indian software firm Wipro’s CEO Neemuchwala to step down

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Jan 31 (Reuters) – India’s Wipro Ltd said on Friday Chief Executive Officer Abidali Neemuchwala has decided to step down due to family commitments, after four years at the helm of one of India’s biggest software services exporters.

The board has started a search to identify the next CEO, the company said in a statement. (bit.ly/2u4S7T4)

Neemuchwala, 52, joined Wipro in April 2015 as the president and chief operating officer, after having served at larger rival Tata Consultancy Services.

He was elevated to the role of chief executive officer the following year and took on the additional role of managing director in 2019, as the company sought to regain market share from its competitors.

Wipro’s stock rose about 13% under Neemuchwala’s tenure as the CEO, compared to a 59% rise in India’s blue-chip NSE Nifty 50 index.

Growth has remained a concern at the Bengaluru-based company. Wipro has been hit by a spending crunch from its key Western clients, who seek better services at cheaper rates.

The company only narrowly managed to beat profit estimates for the third quarter ended Dec. 31, and its fourth-quarter revenue growth forecast of 0-2% was also weaker than expected.

Neemuchwala will continue to hold the office of CEO and MD until a successor is appointed, the company said.

A company representative declined to provide further details on Neemuchwala’s resignation or on his future plans. (Reporting by Subrat Patnaik and Anuron Kumar Mitra in Bengaluru; Editing by Shounak Dasgupta)

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