Infosys attrition rate drops in Q1, employee headcount falls marginally

IT services company Infosys on Thursday declared its Q1 results. The firm also shared an update on the attrition rate at the company which has shown an improvement and stands at 17.3% at the end of June 2023 quarter. As per the regulatory filing, the headcount of the employees at the firm stands at 3,36,294 at the end of June 30, 2023 declining from 3,43,234 employees at the end of March 31, 2023.  Infosys lost nearly 7,000 employees and its headcount was reduced to 3,36,294. Attrition (last twelve months) eased to 17.3 per cent from 20.9 per cent in the March quarter and 28.4 per cent in the year-ago period.

Infosys on Thursday reported an 11 per cent rise in consolidated net profit in June quarter at ₹5,945 crore, but lowered full-year growth outlook to 1-3.5 per cent amid macro uncertainties.

“We had a solid Q1 with a growth of 4.2% and large deals of $2.3 billion which helps us to set a strong foundation for future growth. Our generative AI capabilities are expanding well, with 80 active client projects. Topaz, our comprehensive AI offering, is resonating well with clients. We see this being transformative for clients and enhancing our overall service portfolio” said Salil Parekh, CEO and MD. “We have expanded the margin improvement program with a holistic set of actions for the short, medium and long-term, working on five key areas, supported by our leadership team”, he added.

On the company's recruitment plans, Salil Parekh said that while the company has targets for recruiting for the year, it will keep an eye on "changes in terms of the demand environment" and "attrition numbers". On promotions, the company management said that compensations are under active consideration.

The net profit (before minority interest) during the same period the previous year stood at ₹5,362 crore.

The company posted a revenue growth of 10 per cent to ₹37,933 crore, up from ₹34,470 crore in the year-ago period.

The country's second-largest IT services company has lowered its revenue guidance for the full year to 1 to 3.5 per cent in constant currency, down from 4 to 7 per cent projected earlier.