Infosys Q3 profit was better than expected, company increased workforce

The revenue and profit of Infosys, the second largest software company in the country, in the third quarter of the current fiscal year have exceeded analysts’ expectations. The company has some important deals during October-December. Apart from this, the company desertion rate or the rate of workers leaving the job has decreased. Infosys has increased guidance for revenue growth.

The consolidated net profit of the company rose to around Rs 6,586 crore in the third quarter. This is an increase of 13.4 percent on an annual basis and 9.4 percent on a quarterly basis. Infosys’ operating income grew by 20.2% to Rs 38,318 crore. The company’s attrition rate fell to 24.3 percent, from 27 percent in the same quarter of the previous fiscal year. Infosys added 1,627 workers in the third quarter. The company’s total workforce increased to 3,46,845. The company said most of its business segments and regions have grown by double digits year-over-year.

Infosys paid 65 percent of the variable salary to its staff for the September quarter. This was lower than in the first quarter. Variable remuneration is linked to the performance of the company and the employee. It is usually included in the employee’s salary package. Variable remuneration was cut in the June quarter due to falling margins. However, Tata Consultancy Services (TCS) did not reduce the variable salary during the first quarter. The slowdown and some other reasons are affecting the revenue and margins of IT companies. For this reason, the variable remuneration of employees of some companies in this sector is being reduced. Infosys had prepared a plan to gradually call its staff back to the office late last year.

Many companies in the IT sector are calling workers into the office putting an end to remote work. Krishnamurthy Shankar, executive vice president and group head of Infosys’ human resources division, had said the company would allow staff flexibility. The company has 247 offices in 54 countries.

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