Infosys Technologies posted its lowest-ever quarterly growth in net profit at 56.7 per cent. The current growth rate is, in fact, the lowest in the last 12 quarters.
The company's net profit grew by over 100 per cent for as many as 11 of the last thirteen quarters. Analysts say this is because of sluggish topline growth and higher outgo on THE salaries and wages front.
Infosys' sales revenues increased by 72.28 per cent to Rs 612.52 crore, while its salary bill went up by 82.4 per cent to Rs 260.16 crore. This has been reflected in total expenses which increased 70.7 per cent to Rs 372 crore.
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Due to this, the company's salaries to sales ratio has hit an all-time high of 42.47 per cent, much above the 37.77 per cent clocked in the year ended March 2001.
If the company would had maintained its salary to sales ratio, the bottomline would had been higher by Rs 29 crore leading to a aggregate net profit of Rs 218.8 crore for the first quarter.
Meanwhile the lower rate of growth has also affected the company's profit margins with the net profit margin dropping to 31.02 per cent from 34.12 per cent in the same quarter of the previous year. Operating profit margin slipped to 41.5 per cent from 42.96 per cent.