Infosys Q1 Profit Increases 21.6%

Infosys, India's second-largest software exporter, beat estimates with a 21.6% increase in first quarter’s net profit and retained sales growth outlook riding on a surge in demand for outsourcing services.

Infosys, which named Vishal Sikka as CEO last month, has been facing an exodus of its staff and loss of market share to its rival firms. The exodus is a major concern for the company, which saw its annual staff attrition rate touch a high of 19.5% in the quarter ended June 30.

"Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent," chief operating officer UB Pravin Rao said.

As expected, Infosys maintained its revenue growth forecast for FY2014-15 at 7-9%.

Consolidated net profit for the quarter ended June 30 rose to 28.86 billion rupees ($480.20 million) from 23.74 billion rupees during the same year-ago period. The revenue increased 13.3% to 127.70 billion rupees.