With Jubilant FoodWorks shares tanking over 6 per cent a day after it announced its CEO Ajay Kaul’s resignation, the company today termed his decision just after the quarterly results as “purely coincidental”.
“We would like to reiterate that Jubilant Foodworks is a professionally managed firm and will continue to pursue its well defined objectives. His announcement just after the quarterly results is purely coincidental and there is absolutely no correlation between the two,” a Jubilant FoodWorks spokesperson said in a statement.
“He is at a juncture in his professional career where he wants to evaluate options and pursue his other interests,” the statement said.
Shares of Jubilant FoodWorks plunged 8.13 per cent in intra-day before closing at Rs 944.15 apiece, still down by 6.08 per cent, on the BSE.
Yesterday, the company said its CEO and Whole-time Director Ajay Kaul will resign to pursue opportunities outside the company.
“Ajay Kaul, Chief Executive Officer and Whole-Time Director, has decided to step down… to evaluate and pursue opportunities outside the the Jubilant Bhartia Group. Ajay Kaul will continue in his current role till March 31,” Jubilant FoodWorks had said in a BSE filing.
Jubilant FoodWorks, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, said it has initiated the process of identifying his successor.
Earlier this month, Jubilant FoodWorks had reported a 31.09 per cent fall in stand-alone net profit at Rs 18.99 crore as against a net profit of Rs 27.56 crore in the same period of the previous fiscal.
Its total income from operations went up by 6.69 per cent to Rs 608.91 crore during the quarter under review as against Rs 570.68 crore in the year-ago period.