New Delhi: After revising the compensation package of its CEO Salil Parekh, IT major Infosys is reportedly giving competitive remuneration revisions to its employees. Besides, the firm is also planning to increase its hiring target. In the first quarter of FY23, the company had hired 21,171 people, increasing the company’s headcount to 3,35,186 from 3,14,015 last quarter. The IT giant believes that the move will bring down its attrition rate which rose by 70 basis points sequentially in the quarter ending June 30, 2022 (Q1FY23), reported Livemint. Compared to its rivals TCS, Wipro, and HCL Tech, Infosys has made highest hiring in Q1.Also Read – Hub of Talent: After Infosys, TCS Plans to Set Up Base in These Non-Metro Cities. Deets Inside
“We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiency in operations”, Livemint quoted Nilanjan Roy, Chief Financial Officer as saying.
Infosys Registers 21.4% Year-on-Year Growth
Registering a 21.4 per cent year-on-year growth, Infosys reported a robust performance for Q1 of FY 2022-23. The company also reported a sequential growth of 5.5 per cent in constant currency. Year-on-year, the company reported double-digit growth across all business segments in constant currency terms. The IT giant reported a consolidated net profit of Rs 5,360 crore for the quarter ended June 30, up 3.2 per cent from Rs 5,195 crore reported in the correspoding quarter of the previous year.
Infosys’ consolidated revenue stood at Rs 34,470 crore, up 23.6 per cent from Rs 27,896 crore reported in the year-ago period. “Our strong overall performance in Q1 amid an uncertain economic environment is a testament to our innate resilience as an organisation, our industry-leading digital capabilities and continued client-relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition,” said Salil Parekh, CEO and MD, Infosys.
Digital accounted for 61 per cent of overall revenues, growing at 37.5 per cent in constant currency. Net hiring was strong at 21,171 while operating margin for the quarter was 20.1 per cent, with free cashflow conversion at 95.2 per cent of net profit.