Infosys net profit falls by 1%

Infosys' revenue rose moderately in the June quarter, but at the cost of profit, which took a hit partially on account of salary increases. Net profit for the quarter declined by 1% to $482 million and by 3.5% in rupee terms to Rs 2,886 crore over the preceding quarter. Revenue rose to $2.1 billion, a 2% increase over the previous quarter and 7.1% increase from the year ago period.

The share price was up by over 1% in early trade.

The company has maintained its full year revenue guidance for 2014-15 at 7 to 9%, which is lower than the 11.5% it did last year and the 13-15% that IT industry body Nasscom expects the industry to grow by this fiscal.

The company's internal troubles seem far from over. The employee attrition rate rose to the highest ever level of 19.5% in the June quarter. It was already a high 18.7% in the March quarter, and 18.1% in the December quarter. "Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent," said the company's COO Pravin Rao. The company made a gross addition of 11,506 employees, and a net addition of 879 employees,during the quarter, taking its total strength to 161,284 employees as on June 30.

SD Shibulal, CEO of the company, said, "We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realization. As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights. I wish him the very best." Shibulal retires on July 31 and will hand over the reins to Vishal Sikka, former CTO and Board member of SAP.

 

 

 

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