RS Desikan has ceased to become the CEO of S Mobility* and manager of the company from the close of business hours on June 30, 2014 (yesterday), the company has informed BSE. There is currently no information on who will be replacing Desikan as the CEO of S Mobility.
Desikan had joined S Mobility as the CEO in February 2012. Before that, he was the group CFO and Director (finance) at Mastek Limited. He has held top management positions in various organizations in India and abroad for over 35 years.
Earlier in February, Dilip Modi had also taken over as the chairman of S Mobility after BK Modi had stepped down from his position as the director and chairman of the company.
S Mobility had reported Rs 18.67 crore loss for the quarter ended March 31, 2014, a significant increase from Rs 5.43 crore loss in the same quarter last year and Rs 1.47 crore loss in the previous quarter. This was primarily due to Rs 17.93 crore loss in the mobile devices segment.
The company had said this loss was due to its decision to invest in brand building through increased media spends and better distribution infrastructure to grow its business. The branding expense for the quarter had shot up by 135.7% YoY (year-on-year) to Rs 21.71 crore from Rs 9.21 crore in the same quarter last year. On a quarterly basis, it increased by 43% from Rs 21.71 crore in the previous quarter.
S Mobility currently generates majority of its revenues from mobile device sales, with the segment accounting for around 89.9% of the company’s revenues for the quarter which was at Rs 468.99 crore, up 18.9% YoY.
In May this year, S Mobility had also completed its long-drawn buyback offering in May this year, buying 10.22 million shares for Rs 36.85 crore at a price of Rs 36.05 per share. This represented 61.42% of the maximum buyback size. Through this buyback, promoter group shareholding had increased to 74.36%.
Last week, Google had also announced that it has partnered with Spice, Micromax and Karbonn to launch sub-$100 Android smartphones later this year, through a new initiative called Android One.
*Disclosure: Spice Digital is an advertiser with MediaNama.