BENGALURU: Betting big on large deal wins and a fast-growing digital business, India's second-largest IT services firm Infosys posted a net profit of Rs 4,233 crore in Q1 FY21, an increase by 12% from Rs 3,798 crore a year ago.
Rivals like TCS, Wipro have posted de-growth/flat-growth in their quarterly revenues as COVID pandemic cast its shadow over the IT sector.
Even as Infosys CEO Salil Parekh said that uncertainty still looms large over the key markets in US, UK and India due to the pandemic, the company has provided a revenue guidance for FY21 with 0-2% growth in revenue and 21-23% operating margin for the fiscal.
Infosys on Tuesday announced a major deal win -- a multi-year contract with Brazilian firm Vanguard. Parekh added that the total deal size in Q1-FY21 stood at $1.74 billion.
The consolidated revenues of the IT firm grew by 8.5% to Rs 23,665 crore from Rs 21,803 crore a year ago. The digital business accounted for 45% of the total revenue share and reported a 1.5% YoY increase, according to the company financials.
Hi-tech, retail and life science verticals grew significantly at 12.9%, 9.3% and 7.9% respectively. Financial services, manufacturing, energy – utilities and resources took a hit.
Without revealing the numbers for involuntary attrition (laid-off employees), Infosys' Chief Operating Officer Pravin Rao said that the voluntary attrition has reduced to 11.7% in Q1 FY21 from 20.2% a year ago. He added that the company has completed 95% of all the lateral hirings and will begin onboarding nearly 25,000 freshers towards the end of this quarter.
Rao said that 99% of Infy's employees are still working from home and in a post-COVID setup, the company will follow a hybrid model in which employees will have the option of working from home.
He added that the H-1B visa ban announced by the US President Donald Trump will have minimal impact on the Infosys operations as Bengaluru headquartered firm had already begun the exercise of hiring US nationals across such centres with over 60% of the staff comprising Americans.
Infosys CEO Salil Parekh said that although the COVID pandemic has led to disruption in IT industry and the deal size has been affected, the company still has a robust deal pipeline and there is a huge client traction in areas like automation, cloud services, cybersecurity, workplace transformation etc.
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