IT major, Infosys has announced that it has reached a total headcount of 3,35,186 employees in Q1FY23, with the net addition of 21,171 people in the first quarter ending on June 30.
Furthermore, the company’s attrition rate has increased to 28.4% in Q1FY23 expanding by 70 basis points from 27.7% in Q4FY22. In Q1FY22, the attrition was at 13.9%.
The addition of 21,171 employees in Q1FY23 is the highest among its peers
Wipro added 15,000 employees in the first quarter of this fiscal with a total headcount of 258,574 employees on June 30, 2022. Which was 243,128 in the previous quarter, on March 31, 2022. The company has reported an attrition rate of 23.3 percent, slightly lower than the previous quarter’s 23.8 percent, but significantly higher than 15.5 percent during the corresponding quarter last year.
HCL added 2,089 employees and its attrition rate rose to 23.8 percent as compared to 21.9 percent in the previous quarter.
TCS added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce. The IT company added 14,136 employees, and its attrition rate climbed up from 17.4 percent in the last quarter of the previous fiscal to 19.7 percent in the reporting quarter.
Compensation Revision
Infosys is giving competitive compensation revisions to its employees. The company is also planning on increasing its hiring target ahead.
Nilanjan Roy, Chief Financial Officer said, “We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth.”
“We continue to optimize various cost levers to drive efficiency in operations. Continued high focus on cash led to strong FCF to net profit conversion at 95.2% and improvement in ROE to 31.0%”, Nilanjan Roy added.
However, employees’ salary hikes and net hiring may lead to a further spike in cost which is likely to impact the company’s margin in the near term but the company believes that this move will bring down its attrition rate which rose by 70 basis points sequentially in the quarter ending June 30, 2022 (Q1FY23)., He further added.
For the first quarter of FY23, Infosys reported revenue growth of 23.6 per cent YoY to 34,470 crore. The figure was up 6.8 per cent sequentially. In the US dollar terms, Infy’s revenue was up 5.5 per cent sequentially on a constant currency basis.
Infosys managed to beat Bloomberg estimates on top line (the revenue estimates were for Rs 34,008 crore). But the company missed net profit estimates of Rs 5,671 crore.
