Infosys' first quarter results were in line with expectations for the most part and the outlook also looks solid. However, the Indian outsourcing firm is wrestling with a 25 percent spike in employee attrition--its highest since 2004, analysts say.
The turnover figures are always worth tracking for Indian outsourcing firms. These companies are moving upstream to more "transformational" deals including business process outsourcing and consulting. Meanwhile, these companies are in growth mode and a high attrition rate becomes a bit of a distraction.
First, the numbers. Infosys reported fiscal first quarter earnings of 57 cents a share on revenue of US$1.36 billion. Wall Street was looking for earnings of 56 cents a share on revenue of $1.4 billion. The company said its second quarter revenue will be US$1.41 billion to US$1.43 billion with earnings of 59 cents to 60 cents a share. Wall Street estimates: earnings of 60 cents a share on revenue of US$1.38 billion.
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