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Jubilant FoodWorks Shares Slump On CEO Ajay Kaul's Exit

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Jubilant FoodWorks Shares Slump On CEO Ajay Kaul's Exit

Jubilant FoodWorks has seen two top-level exits in recent times.


Highlights

  1. Jubilant FoodWorks shares slumped over 8 per cent
  2. Domino's India head Dev Amritesh is seen as potential replacement as CEO
  3. Earlier Ravi Gupta, who was CFO had left the company in May

Jubilant FoodWorks shares slumped over 8 per cent to an intraday low of Rs 923 after its CEO and whole-time director Ajay Kaul resigned from his post. 

Jubilant FoodWorks operates Domino's Pizza and Dunkin' Donuts outlets in India. 

Mr Kaul will continue in his current role till March 31. 

"Ajay Kaul, chief executive officer and whole-time director, has decided to step down... to evaluate and pursue opportunities outside the Jubilant Bhartia Group," Jubilant FoodWorks said in a filing to the Bombay Stock Exchange yesterday. 

Analysts expected a negative reaction from the markets to Mr Kaul's exit. Mr Kaul was widely perceived as the architect of supply chain in Dominos, Morgan Stanley said. 

Earlier Ravi Gupta, who was the CFO of Jubilant FoodWorks, had left the company in May. Credit Suisse said these top level exits will have negative impact on shares of the company. 

Meanwhile, Jubilant FoodWorks said it has initiated the process of identifying Mr Kaul's successor. 

Domino's India head Dev Amritesh is seen as a potential replacement for Mr Kaul, said Credit Suisse. 

Earlier this month, Jubilant FoodWorks reported a 31 per cent decline in standalone net profit for the April-June quarter at Rs 19 crore, as against a net profit of Rs 28 crore in the corresponding period of the last fiscal. 

Jubilant FoodWorks shares closed 6.15 per cent lower at Rs 943.75 compared to 0.37 per cent decline in the broader Nifty. 

(With agency inputs)



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