<p>Infosys Ltd shares fell as much as 5.5 per cent on Thursday, a day after the Indian software services firm reported quarterly net profit below analysts' estimates and on worries that a spike in voluntary attrition could squeeze margins.</p>.<p>The Bengaluru-headquartered company posted a 17.5 per cent rise in net profit to 50.76 billion rupees ($675.4 million) in the three months to March 31. Analysts had estimated a profit of 51.93 billion rupees, according Refinitiv data.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/infosys-to-buy-back-shares-worth-up-to-rs-9200-cr-974341.html" target="_blank">Infosys to buy back shares worth up to Rs 9,200 cr</a></strong></p>.<p>The sharp increase in attrition is a cause of worry and could be a risk to the top end of margin guidance, Investec analysts said in a note.'</p>.<p>On Wednesday, Infosys Chief Executive Officer Salil Parekh said in a call with reporters that the company was targeting margins of 22 per cent to 24 per cent for the full year 2021-22.</p>.<p>Infosys reported a voluntary attrition rate of 15.2 per cent for its IT services segment during the March quarter, up from 10 per cent in the preceding quarter.</p>.<p>"Considering the strong deal momentum, a continued increase (in attrition) would require higher lateral additions and potentially meatier salary increases to retain talent," Investec said.</p>.<p>In addition to employee costs, Infosys will also have transition costs from large deals and return of some expenses which were saved because of the Covid-19 pandemic, Investec analysts said.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/infosys-posts-175-fourth-quarter-profit-jump-to-rs-5076-crore-974158.html" target="_blank">Infosys posts 17.5% fourth-quarter profit jump to Rs 5,076 crore</a></strong></p>.<p>On Wednesday, Infosys forecast annual revenue growth of 12 per cent to 14 per cent in constant currency terms for the year to end-March 2022, buoyed by client demand for its digital services during the pandemic.</p>.<p>Quarterly revenue rose to 263.11 billion rupees from 232.67 billion rupees a year earlier.</p>.<p>The company recommended a final dividend for the year of 15 rupees per share, and approved a share buyback of up to 92 billion rupees.</p>.<p>Bigger rival Tata Consultancy Services on Monday posted a 15 per cent jump in profit on cloud services demand, while smaller counterpart Wipro will report results later on Thursday.</p>
<p>Infosys Ltd shares fell as much as 5.5 per cent on Thursday, a day after the Indian software services firm reported quarterly net profit below analysts' estimates and on worries that a spike in voluntary attrition could squeeze margins.</p>.<p>The Bengaluru-headquartered company posted a 17.5 per cent rise in net profit to 50.76 billion rupees ($675.4 million) in the three months to March 31. Analysts had estimated a profit of 51.93 billion rupees, according Refinitiv data.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/infosys-to-buy-back-shares-worth-up-to-rs-9200-cr-974341.html" target="_blank">Infosys to buy back shares worth up to Rs 9,200 cr</a></strong></p>.<p>The sharp increase in attrition is a cause of worry and could be a risk to the top end of margin guidance, Investec analysts said in a note.'</p>.<p>On Wednesday, Infosys Chief Executive Officer Salil Parekh said in a call with reporters that the company was targeting margins of 22 per cent to 24 per cent for the full year 2021-22.</p>.<p>Infosys reported a voluntary attrition rate of 15.2 per cent for its IT services segment during the March quarter, up from 10 per cent in the preceding quarter.</p>.<p>"Considering the strong deal momentum, a continued increase (in attrition) would require higher lateral additions and potentially meatier salary increases to retain talent," Investec said.</p>.<p>In addition to employee costs, Infosys will also have transition costs from large deals and return of some expenses which were saved because of the Covid-19 pandemic, Investec analysts said.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/infosys-posts-175-fourth-quarter-profit-jump-to-rs-5076-crore-974158.html" target="_blank">Infosys posts 17.5% fourth-quarter profit jump to Rs 5,076 crore</a></strong></p>.<p>On Wednesday, Infosys forecast annual revenue growth of 12 per cent to 14 per cent in constant currency terms for the year to end-March 2022, buoyed by client demand for its digital services during the pandemic.</p>.<p>Quarterly revenue rose to 263.11 billion rupees from 232.67 billion rupees a year earlier.</p>.<p>The company recommended a final dividend for the year of 15 rupees per share, and approved a share buyback of up to 92 billion rupees.</p>.<p>Bigger rival Tata Consultancy Services on Monday posted a 15 per cent jump in profit on cloud services demand, while smaller counterpart Wipro will report results later on Thursday.</p>