Infosys CEO says attrition going down every quarter, expects deal wins to continue

Global tech behemoth Infosys had a strong quarter with large deal wins, according to CEO Salil Parekh. The company does not provide quarterly guidances. However, he said the EBIT margin for the full year will be at the lower end of the guided range of 21-22 percent YoY.

Speaking to CNBC-TV18, Parekh said, “We had a very good operating margin in Q3 at 21.5 percent. We have kept the guidance (for the year), which was narrow, to 21-22 percent. We have also made the statement in the comments earlier — it will be at the lower end of the guidance.”

He added, “We have had a very strong large deals win for this for Q3, and we have had very strong growth in the quarter of 13.7 percent.”

The company has two engines of growth: Digital and cloud, and automation and cost efficiency. Parekh expects the deal wins to continue in the coming quarters, but did not provide a time frame for when sectors such as BFSI, hi tech, and telecom will turn around.

Infosys has also seen a reduction in attrition, with Parekh noting that the company has made several changes and implemented policies that have helped with a sharp reduction in attrition.

He said, “Attrition is going down every quarter for us. There were several policies that we put in place, several changes, much more aligned with the employee expectations, career development, training, and many of those things, (that) I believe are helping us with very sharp six-point reduction attrition this quarter, but also in the previous quarters.”

The stock closed at Rs 1,482.95, up 0.8 percent, on Thursday.