Tuesday, April 13, 2010

Infosys posts Q4 profit of 1600 cr; to hire 30,000

The hiring number looks ridiculously large. Getting 30,000 employees productive is a challenge of mammoth proportions. Its going to drive recruitment consultants crazy.


Tuhina Pandey and Mokshada Batra, April 13, 2010 (Bangalore)
Infosys, the second largest Indian IT company, kick started the earning season on Tuesday posting numbers quite aligned with the street's expectations.

Infosys on Tuesday reported a consolidated net profit of Rs 1600 crore for the quarter-ended March 31, 2010, a quarter-on-quarter growth of 2.6 per cent and year-on-year decline of 0.9 per cent.

The company registered revenues of Rs 5,944 crore for the March-ended quarter 2010, up by 3.5 percent quarter-on-quarter and a year-on-year-growth of 5.5 per cent.

But investors were, as always, more focused on the keenly awaited guidance for next fiscal which came in healthy at 16-18 per cent for dollar revenue growth but more muted in rupee terms at 9-11 per cent with earnings seen largely flat in FY11.

"We have done very well to what we thought we would. We have been able to take advantage of the opportunities in the market and grow faster due to our investments in capacity and capability building during the economic downturn", S Gopalakrishnan, CEO and MD said on Tuesday. "This quarter we added 47 new clients, the highest in recent times", he said.

Infosys also said it was looking at recruiting nearly 30,000 persons for this fiscal year including over 2000 from overseas.

In India it had already made 19,000 campus offers, T V Mohandas Pai, Member of the Board and Head-HRD and Education and Research said.

The company was planning to induct 5,500-6,500 laterals, he said while talking about Infosys' hiring plans. It was planning to recruit 1000 each for its China and US office and around 400 in Manila.

Infosys also saw one of the largest wage increase. "There has been a large wage increase for middle and junior level employees. In senior level there has been a 10 per cent increase in wages". Overall the average wage hike has been around 14-17 per cent, he said.

All expect Infosys to beat its indicated guidance as it has in the past but the margin contraction by 150 basis points next fiscal on the back of rupee appreciation and wage hikes, and rising attrition are causes for some concern.

An upbeat management at Infosys headquarters and the most widely used phrase "cautiously optimistic” is out of fashion for now. However, as of now it seems like "play it safe" is still the Infosys mantra.

10 comments:

Anonymous said...

That's 600+ ppl a week, 120 ppl a day!

Anonymous said...

They have to hire 30,000 because they will lose 25,000 - worked there, seen how terrible they treat their employees. No sane person can last long there, company is run by fear - and many employees have committed suicide and are on the verge of a nervous breakdown.... what a terrible company

Cool Head said...

Yeah, had the same experience. Was interviewed on phone, which went off well. Then called at 8 am to Nariman Point, where the interviewing team arrived at 11! All of them very arrogant, masters of the universe kind of attitude. Was put off by that. Decided never to join, they do not respect your time and think that everybody comes to them begging for a job. This happened way back in 2001, when they were not as well known as today. I can imagine the situation today.
IMO it is a Satyam waiting to be exposed. All the original founders have smartly encashed their equity and fled the coop. I wonder why if not that the game will be up soon?

Anonymous said...

what it has to do with the Housing bubble stuff ?

Anonymous said...

Times News Network
Suicide due to Home Loan

Pune: A 31-year-old man allegedly committed suicide by hanging himself from a ceiling fan at his residence in Indrayaninagar in Bhosari.
The incident came to light only on Wednesday morning.The Bhosari police have identified the deceased as Piyush,alias Kishore Muralidhar Mahajan,of Indrayaninagar,Bhosari.
The Bhosari police said that Mahajan had been disturbed ever since he had lost his job.

He was finding it difficult to pay the monthly instalments for the flat he had recently bought.

The police have recovered a suicide note which said he was committing suicide because no one was coming forward to help through his bad times, the police said.
- TNN

Anonymous said...

@Anon 12:01
IT has everything to do with housing bubble, espcially in cities like pune, Bangalore,etc where these idiots went on buying 4-5 flats at a time in a wild Ponzi scheme. The reason for the bubble was IT, this is why the Infosys connection. If you recall Satyam was a RE company disguised as an IT one....if you can read between the lines of the news that is reported by the MSM (main stream media)

Omkar said...

Why the bunch of dreamers here flock here, to write everything they feel like Anonymously :) .. Get real friends, no harm in identifying yourself as what you are then posting anonymously. at least respect yourself , for your views.

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