Infosys raises full year guidance after the best revenue growth in at least eight quarters

• Infosys has reported 7% on quarter rise in consolidated net profit to ₹5,809 crore in October-December quarter.
• It has added eight new clients in the last three months with an annual revenue potential of $100 million or more.
• However, the IT major continues to struggle with the highest number of employees leaving the organisation with an attrition rate at 25.5%.

Technology services giant Infosys saw its revenue grow by 7% on quarter in constant currency terms, that’s the best in the last eight quarters.

Subsequently, the Bengaluru-based company increased the guidance for full-year revenue growth to 19.5% to 20% from 16.5% to 17.5%.

The IT major has added eight new clients in the last three months with an annual revenue potential of $100 million or more. "We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations”, said Salil Parekh, chief executive officer and managing director at Infosys.

Infosys, which is the second largest information technology firm by market capitalisation, reported a 7% on quarter rise in consolidated net profit to ₹5,809 crore in October-December quarter. Revenue for the firm stood at ₹31,867 crore for the quarter.

The IT firm continues to struggle with the highest number of employees leaving the organisation as its attrition rate stood at 25.5% with a total headcount of 2.92 lakh employees as of December 31, 2021.

Rise in attrition leads to higher employee cost and narrower margins. This has been a problem for all technology companies in India in recent months. For Infosys, the margin shrunk by 190 basis points between October and December 2021 compared to the preceding three months. 100 basis points make one percent.

“We continue to prioritize investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions”, said Nilanjan Roy, chief financial officer at Infosys.

SEE ALSO: Infosys raises full year guidance after the best quarter in at least eight
Wipro CEO says dollar revenue will grow 2-4% in the next three months
Wipro increases hiring plan to 30,000 as attrition hits a new high