Increase in salaries has dragged the net profit of Infotech Enterprises down to Rs 54.31 crore in the first quarter ended June 30, as against Rs 64.71 crore in the same period last year, showing a decline of 16 per cent.
The company raised salaries by 6-7 per cent, increasing the employee costs to Rs 315 crore in the quarter from Rs 290 crore in the comparable quarter. The total income went up to Rs 484 crore (Rs 456 crore).
Krishna Bodanapu, Vice-President and Chief Operating Officer of Infotech Enterprises, said the company was in advanced stage of completing process to acquire two companies. “We have evaluated 127 companies and zeroed in on two firms. We are looking at a deal size of $20-30 million,” he told
The company, which employs 10,800 people, would hire 2,500 this financial year. The engineering services company had an attrition rate of 12.4 per cent (14.3 per cent). “After attrition, we will have a net addition of 1,000 people,” he said.
“Leaving aside 300 people we recruit for the US operations, we will deploy all the remaining in our special economic zones,” he said.
Currently, it employs about 1,500 in SEZs. It is planning an SEZ delivery centre in Bangalore in the second quarter. It puts the effective tax rate for the financial year at 27-28 per cent.
kurmanath.kanchi@thehindu.co.in