It seems that good times are ahead for the IT industry in the shadow of the ongoing economic meltdown.
The same is indicated by the Global tech behemoth, Infosys as it had a strong quarter with large deal wins, according to CEO Salil Parekh.
Good Times Ahead
So far, the company has not provided any quarterly guidance.
But, he mentioned that the EBIT margin for the full year will be at the lower end of the guided range of 21-22 percent YoY.
Further, 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,” while speaking to the media.
Adding, “We have had a very strong large deal win for this for Q3, and we have had very strong growth in the quarter of 13.7 percent.”
Deal Wins To Continue
When it comes to Infosys, the IT major has two engines of growth including Digital and cloud, and automation and cost efficiency.
While talking about the future, Parekh expects the deal wins to continue in the coming quarters.
So far, he did not provide a time frame for when sectors such as BFSI, hi tech, and telecom will turn around.
Lower Attrition Rate
For some time, the IT sector has witnessed an increase in attrition rate.
But, in the case of Infosys, it has seen a reduction in attrition in recent times.
As Parekh noted that the company has made several changes and implemented policies that have helped with a sharp reduction in attrition.
“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,” he added.
During the Thursday trading session, the IT firm’s stock closed at Rs 1,482.95, up 0.8 percent, on.