Infosys was fined €175,000 by French labour authorities last week over shortcomings in its employee working time recording system. The company shared details in a regulatory filing on Sunday — adding that the penalty would have no material effect on its financials and operations. The update came mere hours after the company released its quarterly results.
Shares of the Indian IT services company have rallied more than 3.5% on both BSE and NSE as trading began on Monday. Infosys had seen its market valuation eroding by more than Rs 4,400 crore on Friday after tempering the upper end of its full-year revenue forecast amid continued macroeconomic uncertainty.
The company also reported a 12.2% year-on-year rise in consolidated net profit to Rs 7,769 crore for the June quarter. Revenue for Q1FY27 rose 14% to Rs 48,211 crore. Meanwhile the employee count dropped sequentially by 532 — with the total workforce tally at 3,28,062.
Why has Infosys been fined €175,000 by French authorities?
According to details provided by the company, it had received a notice from DRIEETS Île-deFrance (Direction régionale et interdépartementale de l’économie, de l’emploi, du travail et des solidarités). The message outlining the €175,000 fine was received on July 24. Infosys has said it was checking the veracity of the claim and determining further steps.
“The authority found that Infosys’ working time recording system did not fully comply with French legal requirements, citing shortcomings in its reliability, auditability, and monitoring capabilities for certain employee categories,” it said.
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The missive uploaded onto the BSE website also confirmed that there was “no material impact on financials, operations or other activities of the company”.
Infosys trims upper end of FY27 outlook
The IT services giant reported a 12.2% year-on-year rise in consolidated net profit to Rs 7,769 crore for the June quarter. The Q1 results released on Thursday also saw Infosys tempering the upper end of its full-year revenue forecast to between 1.5% and 3% amid continued macroeconomic uncertainty. Shares had plunged 3.57% on BSE as trading continued on Friday — with market valuation eroding by Rs 4,402.47 crore to Rs 4,22,373.67 crore.
The second-largest IT services company of India saw revenue for Q1FY27 rise 14% to Rs 48,211 crore.
Infosys also named company veteran Ashiss Kumar Dash as CEO-designate, with the leadership transition scheduled for April 1 next year.