Search Site

Trends banner

Tesla Q2 sales down 13.5%

Shares rally after the disclosure, better than some forecasts.

TomTom cuts 300 jobs

The firm said it was realigning its organization as it embraces AI.

Aldar nets $953m in sales at Fahid

Aldar said 42 percent of the buyers are under the age of 45.

Qualcomm to Alphawave for $2.4 bn

The deal makes Alphawave the latest tech company to depart London.

Equinor signs $27 bn gas deal

The 10-year contract was signed with Centrica.

Infosys Q2 profit at US$731.4m

The Bangalore-headquartered company reported large deals of $2.7 billion for the quarter, its best result in nearly two years. (Creative Commons)
  • Tech companies have benefited from higher digital services demand since the pandemic,.
  • Infosys also reported a marginally lower employee attrition rate - a key metric for IT companies - compared to the previous quarter.

MUMBAI, INDIA – Indian outsourcing behemoth Infosys approved a $1 billion share buyback on Thursday after strong quarterly profits that reflected sustained demand for digital services.

Tech companies have benefited from higher digital services demand since the pandemic, and India’s second-largest IT company has kept a robust balance sheet despite labor competition driving up sector salaries.

Net profit rose 11 percent year-on-year to US$731.4 million (60.21 billion rupees) in the second quarter.

Revenues were up 23.4 percent for the same period, helped by strong demand in North America and Europe.

“While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek,” chief executive Salil Parekh said in a statement.

The Bangalore-headquartered company reported large deals of $2.7 billion for the quarter, its best result in nearly two years and up $1 billion from the June quarter.

Its board approved plans to buy back shares worth $1.13 billion (93 billion rupees) at 1,850 rupees per share, a 30 percent premium to Thursday’s closing price.

Chief financial officer Nilanjan Roy said the board had approved an open market share buyback of $1.14 billion (93 billion rupees) in its meeting before the results announcement.

Infosys also reported a marginally lower employee attrition rate – a key metric for IT companies – compared to the previous quarter.

Competition for employees has increasingly driven up salaries and weighed on operating margins of Indian technology companies.

“While supply side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure,” Roy said.

Infosys is India’s second-largest information technology company and earns over 60 percent of its revenues from North American markets.

It was at the forefront of an outsourcing boom that saw India become a back office to the world as Western firms subcontracted work to a skilled English-speaking workforce.

Shares in Infosys closed 0.64 percent lower in Mumbai ahead of the earnings announcement.