Infosys divests its entire holding in Trifacta for $12 million

The IT services company had made an investment of $10 million during 2016-2019, in Trifacta, a data engineering software company headquartered in San Francisco, US.

“The Company had made minority investment of US$10.0 million during 2016-2019, in Trifacta Inc (www.trifacta.com), a data engineering software company headquartered in San Francisco, USA. With reference to the said investment, the Company would like to inform that it has divested its entire holding in Trifacta Inc for ~US$12.0 million. The transaction was completed on August 29, 2022,” the statement read.

Founded in 2012, Trifacta provides data wrangling software that enables non-technical users to easily transform data for analysis.

Infosys cuts average variable pay to 70% for June qtr

Meanwhile, Infosys has reportedly scaled back the average variable payout of employees to about 70% for the June quarter amid margin squeeze and high employee costs.

The company has reduced variable payout for the June quarter or Q1FY23 to about 70% and the employees have been informed about the same.

Last month, Infosys Ltd’s investors were left unimpressed with its June quarter or Q1FY23 earnings. The tier-I IT firm saw 5.5% sequential growth in constant currency (CC) revenue, beating the consensus estimate of 4.4%. 

Also, Infosys had outperformed peers including Tata Consultancy Services (TCS), HCL Technologies, Wipro and Tech Mahindra on this parameter in the first quarter.

What’s more, in an unexpected move, Infosys raised its FY23 CC year-on-year revenue growth guidance to 14-16% from the earlier 13-15%. Demand environment remains extremely strong with increasing traction in digital and cloud services, the management said.

Higher employee benefit expenses, sub-contracting costs, and travel expenses had pushed up overall costs for the Bengaluru-headquartered firm in the June quarter.

As such, elevated level of attrition leading to higher employee costs is denting the profitability of the Indian IT industry.

Infosys’ Chief Financial Officer, Nilanjan Roy, in the Q1 earnings statement, had said the company is fuelling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions.

“While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth,” Roy had said.

The company had said it continues to optimise various cost levers to drive efficiency in operations. Compensation hikes, however, impacted margins by 160 basis points, and utilisation dipped due to impact of new freshers coming in.

The firm asserted that these were more in the nature of “investments” given the robust demand scenario, and assured it will be looking at cost optimising levers such as better utilisation, and more automation.

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