Infosys Q1 Net up 21.6%; attrition rate hits record 19.5%

Infosys Q1 Net up 21.6%; attrition rate hits record 19.5%BANGALORE: IT major Infosys today reported a healthy 21.6 per cent growth in consolidated net profit for the first quarter, helped by increase in business from Europe and improved operational efficiency.

The city-based firm posted a net profit of Rs 2,886 crore for the quarter ended June 30 this fiscal against a net profit of Rs 2,374 crore in the year-ago period.

Consolidated revenue for the reported quarter were up 13.3 per cent to Rs 12,770 crore from Rs 11,267 crore in the same quarter of 2013-14 fiscal.

Commenting on the performance, Infosys’ outgoing CEO and Managing Director S D Shibulal said: “We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realisation.”

However, Infosys’ employee attrition hit a record high of 19.5 per cent in the April-June quarter of 2014-15 fiscal from 16.9 per cent in the year-ago period, signaling that the internal woes of the country’s second largest IT services firm are not yet over.

The firm has witnessed a spate of exits of its top level executives since June last year when co-founder NR Narayana Murthy was called back from retirement to put the firm back on a growth trajectory.

Commenting on attrition, Infosys COO U B Pravin Rao said: “Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent.”

For 2014-15, Infosys retained its conservative revenue guidance of 7-9 per cent in USD terms and 5.6-7.6 per cent in rupee terms, much below Nasscom’s industry growth outlook at 13-15 per cent in dollar terms.

In US dollar terms, its consolidated net profit rose 15.3 per cent to USD 482 million in the April-June quarter of this fiscal, while revenues rose 7.1 per cent to USD 2.13 billion during the period.-PTI

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