Infosys to offer pay raise as tech giant witnesses rise in net profits
- Infosys reported a 20.6% rise in quarterly profit
- The firm posted a net profit of Rs 48.45 billion
- Quarterly revenue of the firm rose to Rs 245.70 billion
Indian multinational technology corporation Infosys on Wednesday reported a 20.6% rise in quarterly net profits in the July-September quarter due to a surge in demand for digital services from its Western clients during the pandemic, as per AFP report.
The Bangalore-based firm posted a net profit of Rs 48.45 billion rupees ($661.34 million) for the quarter that ended on September 30. The firm witnessed a rise in profits from 40.19 billion in the previous year to Rs 48.45 billion rupees.
India's IT outsourcing company has been a rare source of comfort in an economy plagued by the COVID-19 pandemic, reported AFP.
Both Infosys and Tata Consultancy Services are offering salary hikes as the country struggle with prolonged economic slowdown and rising unemployment.
Chief operating officer Pravin Rao, in a statement said, "The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase."
He added, "Employees have been a critical part of our success" and stated that raises will be awarded to staff and they will also be entitled to a performance-based bonus.
Quarterly revenue of the tech conglomerate rose to Rs 245.70 billion from Rs 226.29 billion last year. Infosys is India's second-largest IT company.
The company was at the forefront of an outsourcing boom that saw the country become a back office to the world, as Western firms subcontracted work to a skilled English-speaking workforce.
Over 60% of Infosys revenue comes from North American markets, as per an AFP report.
Competitor TCS, however, reported a slump in its net profits last week. The company also set aside 12.18 billion rupees for damages in US litigation and announced a $2.18 billion share buyback plan.
Infosys shares were down over 2% in Mumbai before the quarterly profits were declared.