Infosys Q1 sees revenue up ahead of Sikka's takeover
Indian IT outsourcer Infosys reported its fiscal first quarter earnings and revenue Friday, with results beating estimates on a 15 percent year-over-year profit gain.
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Infosys said revenue grew 7 percent to US$2.13 billion, with profit climbing to $482 million, according to International Financial Reporting Standards (IFRS).
The company maintained its full-year forecast for sales growth at 7 to 9 percent for its fiscal year ending March 31, 2015.
Infosys added 61 new clients during the quarter, and said it plans to continue the rally by increasing investment in cloud computing and smartphone apps.
Not all the numbers were positive for the IT giant, however. Infosys said it added 11,506 employees during the quarter as it experienced a worrisome exodus throughout all levels of staff.
"Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent," UB Pravin Rao, Infosys COO, said in a statement.
But perhaps the positive earnings results could be a morale boost for the once (and somewhat still) beleaguered Infosys, who like other Indian outsourcers, felt the economic sting during the financial downturn.
What's more, current Infosys CEO S. D. Shibulal, who took over when co-founder and CEO Narayana Murthy stepped down, will hand the reigns to former SAP exec Vishal Sikka come August 1. Many predict that Sikka will shake up the growth strategy at Infosys, turning the focus from contracts over to products and technologies. The leadership change could also prove helpful at staving off the dramatic loss of employees.
"As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights. I wish him the very best," Shibulal said in statement.
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