Infosys Q1 net up 21.6%; attrition rate at 19.5%
India's second largest software exporter Infosys has beaten estimates to report a 13.3% rise in net revenue at Rs 12,770 crore and 21.6% rise in net profit at Rs 2,886 crore for the first quarter of 2014-15 on year-on-year basis.business Updated: Jul 11, 2014 15:47 IST
India's second largest software exporter Infosys has beaten estimates to report a 13.3% rise in net revenue at Rs 12,770 crore and 21.6% rise in net profit at Rs 2,886 crore for the first quarter of 2014-15 on year-on-year basis.
Infosys stock price was up in the morning trade on better than expected results and large deal wins.
Infosys revenue and profit, however, have declined 0.8% and 3.5%, on a sequential basis.
The company said it would grow 7-9% in US dollar terms for the full-year while Nasscom predicted 13-15% growth for software exports in 2014-15.
During the last quarter, Infosys showed a steady rise in revenue from its key market US while Europe business declined.
Infosys executed an overhaul of its top management in June and chose former SAP board member Vishal Sikka as managing director and chief executive officer.
Sikka would take over on August 1.
SD Shibulal, the outgoing managing director and CEO said the company continued to enjoy the confidence of clients.
"As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights," said Shibulal.
"We saw positive trends in our large deal wins during the quarter," said chief operating officer UB Pravin Rao.
Infosys' attrition rate is significantly high at 19.5% as 10,627 employees left the company last quarter.
"Employee retention rate is worrisome and we are implementing various initiatives to retain talent," he said.
However, the company's total employee strength grew to 1,61,284 as it hired 11,506 people during the same period.
The company showed high utilisation levels, excluding trainees, at 80.1% in April-June quarter.
"The company posted better than expected numbers, on the EBIT and net profit front, while sales were just below expectations," said Sarabjit Kour Nangra, vice president, research, Angel Broking.