Infosys recorded an almost 11 per cent rise in net profit during the first quarter, but it fell short of analyst expectations and revised its revenue growth outlook for the fiscal year downward. The company attributed this to spending cuts and delays in decision-making by clients, particularly in the financial services sector.
Furthermore, Infosys experienced a decrease in its workforce, with a net headcount dip of 3,611 reported in the first quarter of fiscal 2024. This was in stark contrast to the addition of 52,842 employees during the same quarter the previous year.
Regarding hiring plans, Infosys stated that it will adopt a demand-based approach and evaluate its requirements as per market needs, aligning with the practises of other industry peers. However, the company did not disclose the exact number of hires it plans to make for the entire year, unlike the approximately 50,000 candidates it onboarded the previous year.
In relation to salary hikes, Infosys has not yet made any official announcements. Typically, the company rolls out salary increments in April, but this time, the decision is still under consideration. Likewise, specific details about the quantum of variable pay given during the quarter were not disclosed by the management, though employee expenses did increase by 13% over the year.
Despite the challenges, Infosys did manage to lower its attrition rate, which stood at 17.3 per cent for the quarter, compared to 20.9 per cent in the previous quarter. The company remains cautious about hiring and other financial decisions, taking into account the demand environment and the overall business outlook for the rest of the fiscal year.