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Infosys to hire 26,000 freshers in FY22; announces USD 1.2 billion share buyback

Riding high on large deal wins and an improved demand climate, Infosys has provided a double-digit revenue guidance for FY22 in the range of 12-14%.

Published: 14th April 2021 08:15 PM  |   Last Updated: 14th April 2021 08:15 PM   |  A+A-

Infosys

Infosys logo (Photo | EPS)

Express News Service

BENGALURU: India’s second largest software services exporter, Infosys will hire 26,000 freshers from colleges within India and abroad in line with its recruitment plans. Even as the attrition rate for Q4, FY21 (January-March) almost doubled to 15% QoQ, the company’s Chief Operating Officer, Pravin Kumar Rao said the company is continuing its employee engagement levels especially compensation cycles which will be effective July, 2021.

During FY21, due to COVID uncertainties and as a part of cost reduction process, the company had to delay the promotion/ pay hike cycles.

On the hiring front, Rao said that the company will actively hire top talent from the market even as the high attrition rates are expected to continue for next few quarters.

In contrast, peer TCS said on Monday that it has managed to keep its attrition rate at an all-time low at 7.2% YoY.

Infosys CEO, Salil Parekh maintained that the company has also rolled out digitization training programmes for its employees at a time when the digital business accounted for more than 50% of its business in FY21.

Riding high on large deal wins and an improved demand climate, Infosys has provided a double-digit revenue guidance for FY22 in the range of 12-14% whereas its operating margin outlook for this financial year is 22-24%. Parekh said that there is a continued traction from clients for various digitization processes including cloud, data analytics and cyber security- a multi-year cycle, which is being leveraged by the company. The large deal wins for Q4 were reported at $2.1 billion whereas for FY21 , the total contract value stood at $14.1 billion, in which 66% deals comprised the new contracts, Parekh said at a press conference.

The company also crossed Rs 10,000 crore revenue milestone in FY21 which saw a 5% growth YoY. The digital revenues alone grew by 29.4% for the financial year whereas the operating margin stood at 24.5%. The company board has also approved a $1.2 billion (Rs 9,200 crore) sharebuyback plan for its investors  from the open market upto Rs 1750 per share.

In addition, Infosys has proposed a final dividend of Rs 15 per share. Together with the interim dividend of ₹12 per share already paid, the total dividend per share for FY 21 will amount to Rs 27 which is a 54% increase over FY 20. With this, the company has announced total dividend of Rs 11,500 crore for FY 21, the IT company said in a statement.

While welcoming the relaxation in H1-B visa regimes by Joe Biden government in US especially with respect to delay in wage hike for visa holders for a year, Infosys COO said that the focus is entirely on hiring more locals from within the client geographies for new design studios/data centres.



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