Infosys Reports 20.5% YoY Increase In Net Profits For Q2FY21, Promotions and Salary Hikes To Be Effected Across All Levels

Infosys
Infosys

Infosys on Wednesday reported of 20.5 percent year-on-year (YoY) increase in the net profit from the September quarter. Last year the company had posted ₹4,019 crore profit for the corresponding quarter. According to the report from the company, consolidated revenue from operations increased to ₹ 24,570 crores in Q2FY21, which marks a year on year growth of 8.6 percent. According to the same report, the company also claims that its net profit rose to ₹ 6,228 crores which is a year on year growth of 26.8 percent.

The company also revised its full-year revenue as well as margin guidance given the highest ever deal wins in Q2. The second-largest software services provider of the country also revised its revenue growth guidance upward to 2 to 3 percent in constant currency for the financial year 2020-21, which was estimated to be 0 to 2 percent earlier. The full-year operating margin guidance of the company was also revised and now shows to be 23-24 percent, whereas it was previously 21-23 percent.

Salil Parekh, CEO, and MD of Infosys said, “Our second-quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues.”

The company has set an interim dividend of ₹12 per equity share. They also declared October 26, 2020, as the record date for interim dividend and November 11, 2020, as the payment date.

Nilanjan Roy, CFO of Infosys said on the Q2 performance, “Our relentless efforts on cost optimization and strengthening operational efficiencies helped by certain cost deferrals led to 270 bps sequential improvement in operating margin to 25.4% and a 300 bps improvement in H1 margins.”

Pravin Rao, COO of Infosys also commented, “The strength and resilience of Infosys were fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $3.15 bn and attrition reducing to single digits.” He also added, “As recognition of employees’ stellar performance, we are giving 100 percent variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective January 1.”

Salary hike and promotion:

The IT company has also announced that they would roll out the increase in salary and promote workers across all levels and would be effective from 1st January of the upcoming year. As of September end, the company had 2.40 lakh employees.

COO Pravin Rao said, “The strength and resilience of Infosys were fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $ 3.15 billion and attrition reducing to single digits. Employees have been a critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective Jan 1st.”

Their rival in the IT sector, TCS had also announced salary hikes last week, which they said would be effective from October 1.

About Infosys:

Infosys Limited is an Indian multinational corporation that provides business consulting, information technology, and outsourcing services. The company has its headquarters in Bangalore, Karnataka. They rank second and follow Tata Consultancy Services which is the largest IT company in India. The company was founded on 7, July 1981.