As it crossed the ₹2,000-crore turnover mark and acquires a new brand identity, Infotech Enterprises has decided to bring in a key organisation structure. It moves to a geography-wise structure from the traditional Business Unit, vertical-based structure to get “closer to the customer”.

The firm roped in Boston Consulting to advise it on the revamp in the organisational structure. “It helped us on how to structure the organisation, the challenges involved, sensitivities involved and how to communicate the changes within the organisation by addressing the concerns, if any,” Krishna Bodanapu, the newly-appointed Chief Executive Officer and Managing Director of Infotech Enterprises, told Business Line after announcing the results for the fourth quarter ended March 31, 2014 and the financial year.

“The idea is to realign the management to enhance customer focus and bring efficiency in operations. Sales have been aligned to geographies and operations to service lines,” he said.

Krishna is the son of BVR Mohan Reddy, founder-Executive Chairman. The company will be called Cyient from next month to shed the 20-year-old ‘Infotech’, which sounds too generic.

The company reported a net profit of ₹70 crore for the fourth quarter, showing a growth of 29 per cent year-on-year. It registered revenues of ₹595 crore, a growth of 28 per cent year-on-year.

For the financial year 2013-14, it reported a net profit of ₹266 crore, an increase of 15 per cent year-on-year on a turnover of ₹2,206 crore. It sits on a cash pile of ₹726 crore, which Krishna Bodanapu said would be spent on an acquisition in the next two quarters.

About 12,000 employees of Infotech would get a salary hike of 8-10 per cent in India. For others, the hike would be 1-2 per cent. The attrition rate came down to 10.7 per cent, Mohan Reddy said. The company announced a final dividend of 60 per cent or ₹3 a share.

Krishna said the company would hire about 1,500 in the current financial year, the same number of people it hired in 2013-14.

New heads of business Under the new management structure, John Renard will head Europe, followed by Tom Edwards North America and Sanjay Krishna Asia-Pacific region. Operations will be headed by Rajendra Velagapudi for engineering and Sunil Kumar Makkena for Data Networks and Operations.

Anand Parameswaran will take care of Human Resources as Ashok Reddy takes up the role of President of Corporate Affairs and Infrastructure.

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