Outperforming the market expectations, the Bengaluru-based IT major Infosys has seen a 6.3% jump in its fourth-quarter net, along with announcing a dividend of Rs 9.5 per share.
On the other hand, even as the company is has said that it will honour all the offers it had made to the campus and lateral hires, but on the other hand, it has put new hiring, promotions, and increments on the hold due to emerging coronavirus situation.
In the quarter ended March 2020, the company clocked a profit of Rs 4,335 crore, up 6.3% from Rs 4,078 crore in the corresponding quarter last year. However, on a sequential basis, the companies net was down by 2.9% from Rs 4,466 crore in the December quarter.
The revenues of the companies also grew by a healthy 8% to Rs 23,267 crore, from Rs 21,539 crore in the corresponding quarter last year.
Despite the coronavirus pandemic hitting the western world hard, the company witnessed a healthy growth in its revenues from North America (5.1%) and Europe (6.4%).
The digital revenues of the company continued to grow during the quarter -- growing by 31.7% to $1.34 billion. The company signed large deals worth $1.65 billion during the quarter, taking the annual tally to $9 billion.
The attrition level in the company, which had come down in the previous quarter, has again gone up by 110 basis points to 20.7%. The attrition rate in the company has been a cause of concern for its management. The company has said that it will honour the offers it has made till now, but has frozen hirings, promotions and salary increments at the moment.
"With some impact due to project deferrals and the softening of discretionary spends, there will be some margin pressure in the near term. In response to these new contours of projected demand, Infosys will work to optimize its cost structure and operational rigor, while continuing to invest in strengthening its digital capabilities. Infosys intends to not only nurture its vast pool of digital talent in a high-productivity environment but also honour the job offers it has extended to the markets, in order to enhance the skill-sets it can," company CEO Salil Parekh told reporters over a virtual press conference.
The company further said that 93% of its staff is working from home.
Meanwhile DN Prahlad, a relative of NR Narayana Murthy, has resigned as independent director of the company citing his need to devote more time for his other business commitments with effect from April 20, 2020. Prahlad is one of the directors, which whistleblowers' letter alleged that Parekh has made racist comments against. However, after an independent investigation, the company said that it hadn't found any merit to allegation.
Prahlad has been replaced by Uri Levine on the board.