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Infosys profit up 21.6 percent, retains forecast

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

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 annualized staff attrition rate touching a record high of 19.5 percent in the quarter ended June 30 from 18.7 percent in the previous quarter.

Employees walk past an Infosys Ltd. logo at the company's campus in Electronics City in Bangalore, India.
Vivek Prakash | Bloomberg | Getty Images
Employees walk past an Infosys Ltd. logo at the company's campus in Electronics City in Bangalore, India.

"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 percent, as expected.

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

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

Revenue in the quarter rose 13.3 percent to 127.70 billion rupees.

Infosys customers include BT Group, Bank of America and Volkswagen AG.

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