Infosys Q1 profit up 21.6 pct; attrition rate at record 19.5%

Jul 11 2014, 16:01 IST
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Consolidated net profit for the quarter ended June 30 rose to 28.86 billion rupees. (Photo: AP) Consolidated net profit for the quarter ended June 30 rose to 28.86 billion rupees. (Photo: AP)
SummaryInfosys posted a net profit of Rs 2,886 cr as compared to Rs 2,374 cr a year ago.
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Infosys, India’s second largest IT services exporter reported a 21.56% rise in consolidated net profit for the first quarter ending June 30, 2014. The company posted a net profit of Rs 2,886 crore as compared to Rs 2,374 crore in the corresponding period a year ago.

In effect Narayana Murthy has driven Infosys onto growth path as new CEO Vishal Sikka takes over at the helm.

The revenues of Infosys for the first quarter ending June 30, 2014 rose by 13.3% The company reported a revenue of Rs 12,770 crore as compared to Rs 11,267 crore in the corresponding period a year ago. Sequentially, Infosys' posted a 3.5% decline in net profit, while revenues declined 0.81%.

The company has retained its dollar revenue guidance for the current fiscal at 7-9%.

Read Reports: Infosys Result: Fact Sheet

Infosys Result: IFRS USD

Infosys Result: IFRS INR

“We improved operational performance as a result of our cost optimization initiatives and a focus on increasing productivity and utilization. This partially offset the impact of compensation increases for our employees this quarter.” said Rajiv Bansal, Chief Financial Officer. “It will help us invest in areas that will accelerate growth.”

The company added 61 clients during the quarter and its gross addition of employees stood at 11,506 during the quarter.

“We saw positive trends in our large deal wins during the quarter. We believe that this momentum will hold us in good stead as we focus on increasing volumes.” said U B Pravin Rao, Chief Operating Officer. “Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent.”

“We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realization.” said S D Shibulal, CEO and Managing Director, Infosys. “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."

Dipen Shah, Head- Private Client Group Research, Kotak Securities: Infosys results were above expectations. The surprise came largely from the margins. We are positive on the long term prospects of the company and have a positive view on the stock with a medium term perspective.

HIGHLIGHTS

* Q1 net profit at 28.86 bln rupees vs 26.72 bln estimates

* Annualised staff attrition rate rise to record 19.5 percent

* To invest

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