Infosys Battles Profit Drop Amidst Employee Compensation and Strategic Acquisitions

Infosys, India's second-largest IT firm, reported an 11.7% decline in net profit due to employee compensations and acquisitions. Despite challenges, the company achieved robust revenue growth and plans to hire 20,000 freshers. Margins improved with strategic focus on AI and cloud solutions.

India's IT giant Infosys has announced an 11.7% decline in its net profit for the March quarter, citing employee compensation hikes and acquisitions as primary factors impacting earnings. The company reported a profit of Rs 7,033 crore, contrasting with last year's Rs 7,969 crore.

Chief Executive Officer Salil Parekh expressed cautious optimism, projecting a 0-3% revenue growth amid environmental uncertainties. Highlighting Infosys' resilience, he noted improvements in operating margins, bolstered by a strategic focus on AI and cloud services.

Despite headwinds, including acquisition costs and elevated employee benefits, Infosys exceeded its revenue guidance for FY25. The company plans to hire 20,000 freshers, with attrition levels at 14%. Infosys' board proposed a 13.2% dividend increase, reflecting confidence in future growth.

(With inputs from agencies.)