In the wake of the Coronavirus, IT company Infosys said pressure on margins may be visible in the short term.

However, the CEO of Salil Parekh said that the company is seeing increased customer interest in cloud services.

Nilangan Roy, Infosys  CFO, said through a conference call, the company has stopped hiring, promotions and salary hikes to manage costs to offset the damage caused by the pandemic

Roy said: "Infosys will honour all of its hiring commitments."

He also said that the retail, travel, hospitality, energy, and oil segments have been the most affected in the current environment. Roy said the cards and payment sectors will also face difficulties.

Pravin Rao COO said the IT major is not looking at any layoffs related to COVID 19 "at this stage".

Rao said the company’s employees will gradually return to offices in a phased manner. “We are in no hurry to get employees back to offices. In our first phase of return, when it happens, it is possible that 5% of the employees will return, and in the next phase will total about 15%. ”

Rao said that the company will make 35,000 job offers in FY21.

Infosys said it will honour its job offers it has extended to the markets to improve the skills it can bring to recovery-focused client environments.

"Considering the business uncertainty emanating from COVID-19, the company cannot provide revenue guidance and margins for FY21 at this stage. The company will provide guidance after improved visibility," the company said in its stock exchange filing.

Source: Business Today, Money Control

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