India's Infosys misses profit estimates as costs surge
Monday, 25 July 2022
BENGALURU, July 24 (Reuters): India's Infosys Ltd on Sunday reported June-quarter profit that missed estimates, hurt by higher employee expenses, but the IT services company raised its annual revenue outlook, citing a strong demand outlook.
Infosys' larger IT rival Tata Consultancy Services and also smaller rivals such as HCL Technologies and Wipro have seen their margins erode as they battle a higher sector-wide talent churn and try to retain employees.
Overall expenses surged more than 29 per cent, while operating margins for Infosys for the June quarter came in at 20.1 per cent, down 3.6 per cent year-on-year. The company also retained its operating margin guidance for full year at 21 per cent-23 per cent.