Infosys Q1 profit up 21.6 per cent, retains annual forecast

Infosys, India's second-largest software services exporter, beat estimates with a 21.6 per cent rise in quarterly net profit and retained sales growth outlook for this year on surging demand for outsourcing services.

"Consolidated net profit for the quarter ended June 30 rose to Rs 28.86 billion ($480.20 million) from Rs 23.74 billion in the same year-ago period," the Bangalore-based company said in a statement on Friday.

The profit was higher than the Rs 26.72 billion average of analyst estimates, according to Thomson Reuters data.

Revenue in the quarter rose 13.3 per cent to Rs 127.70 billion.

Infosys, which named Vishal Sikka, a former senior executive at German software company SAP AG, as CEO last month, has been reeling under a staff exodus and loss of market share to rivals.

The staff departures are a major worry for the company, which saw its annualised staff attrition rate touching a record high of 19.5 per cent in the quarter ended June 30 from 18.7 per cent in the previous quarter.

"Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent," Chief Operating Officer U.B. Pravin Rao said in a statement to accompany the results on Friday.

Infosys, which added 61 customers in the quarter, maintained its revenue growth forecast for the year to March 2015 at 7-9 per cent, as expected.

The company's customers include BT Group Plc, Bank of America and Volkswagen AG.

(Reuters)