Infosys’ attrition highest among top 4 IT majors in Q2FY23

Infosys is the latest to announce its Q2 result on October 13, while HCL Tech and Wipro presented their quarterly earnings on October 12. IT bellwether company TCS was the first to announce its Q2 results on October 10.

Infosys:

Infosys witnessed a sharp decline in its attrition rate by 1.3 per cent to 27.1 per cent in Q2FY23 against 28.4 per cent in Q1FY23.

In Q4FY22, the attrition was 27.7 percent, 25.5 percent in Q3FY22, 20.1 percent in Q2FY22, and 13.9 percent in Q1FY22.The company’s leadership said that attrition has been reducing for the last three quarters.

“While supply side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure,” Chief Financial Officer Nilanjan Roy said in a statement.

Infosys added 10,032 employees during the second quarter of FY23, and the total headcount of the company stood at 3,45,218.

Infosys’ net profit rose 11 per cent to ₹6,021 crore during July-September 2022 period, as compared to ₹5,428 crore in the year-ago quarter.

HCL Tech:

HCL Tech‘s attrition rate, however, remained unchanged at 23.8 per cent in Q2FY23 compared to the previous quarter.

As of March 31, 2022, the company’s attrition rate was 21.9 per cent. In Q2FY22, HCL Tech’s attrition rate stood at 15.7 per cent.

HCL Tech added 8,359 employees in the second quarter ended September 30, 2022. The total headcount of the IT services major currently stands at 219,325.

“If annually, our head count is growing by 15-20 percent, hiring in new vista locations will grow by 25-30 per cent in the same time,” said CEO C Vijayakumar.

HCL Tech’s consolidated net profit for the quarter increased 7.05 percent to ₹3,489 crore from ₹3,259 core as compared to the same quarter last year.

Wipro:

Wipro’s voluntary attrition measured in the trailing twelve months for the quarter was at 23.0 per cent , a moderation of 30 bps from the June 2022 quarter, which was at 23.3 per cent While its attrition rate was low at 20.5 per cent during the Q2 of FY22.

“We continue to invest in and upskill our talent to stay ahead of our clients’ evolving needs. In the second quarter, we promoted more than 10,000 colleagues and increased salaries across bands. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition,” said CEO Thierry Delaporte.

Wipro’s that net employee addition during the second quarter of fiscal year 2023 was only 605 people, taking its headcount to 2,59,179 as of September 30, 2022.

Wipro Ltd reported a dip in its consolidated profit after tax (PAT) at ₹2,659 crore for the quarter ended September, 2022 (Q2FY23). This is a 9.27 per cent decline from ₹2,930.7 crore posted in the same period last year (Q2FY22).

TCS:

Tata Consultancy Services (TCS) saw attrition for the September quarter (Q2FY23) come in at 21.5 per cent.

In the June quarter, TCS had said that the rate of attrition was at 19.7 per cent while in the March quarter, TCS’ attrition rate was at 17.4 per cent.

On the attrition rate, Milind Lakkad, Chief HR Officer, said, “We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate.”

“Reflecting our culture of being committed to our employees, we have honoured all the job offers we had made. Our investments in capacity building and organic talent development have allowed us to substantially grow our business ahead of headcount addition this quarter,” Lakkad added.

TCS workforce stood at 616,171, a net addition of 9,840 employees during the quarter.

TCS reported a 8.4% rise in second-quarter net profit which rose to ₹10,431 crore.