Infosys to roll out salary hikes, promotions across all levels effective January 1

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Infosys to roll out salary hikes, promotions across all levels effective January 1

STORY HIGHLIGHTS

  • New Delhi: India’s second-biggest software firm Infosys on Wednesday announced that it will roll out salary hikes and promotions across all levels effective January 1, 2021. The IT major also said it is giving 100% variable pay along with a special incentive for Q2.
  • “The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $3.15 billion and attrition reducing to single digits”, said Pravin Rao, COO. Note that Infosys had over 2.40 lakh employees as of September end.
  • “Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2.
  • Additionally, we are rolling out salary increases and promotions across all levels effective Jan 1st,” he added.
  • “Our relentless efforts on cost optimization and strengthening operational efficiencies helped by certain cost deferrals led to 270 bps sequential improvement in operating margin to 25.4% and a 300 bps improvement in H1 margins”, said Nilanjan Roy, CFO adding, “Free Cash Flows grew significantly in H1 driven by our consistent focus on liquidity and cash management. Consequently, we are increasing our interim dividend per share by 50% to Rs 12.”
  • The Information Technology and Consultancy giant reported a 20.6% rise in September-quarter profit, helped by growth in client demand for its new-age digital services such as cloud, data and analytics during the pandemic. Company’s consolidated net profit climbed to Rs 4,845 crore from Rs 4,019 crore a year earlier. Revenue rose to Rs 24,570 crore from Rs 22,629 crore in the quarter.
  • Meanwhile, Tata Consultancy Services Ltd (TCS) announced salary hike for its employees earlier this month. The company stated that salary hikes will be rolled out effective October 1. “We want to thank all TCSers for the incredible resilience they have shown during these trying times. We are happy to announce that we will be rolling out salary increases, effective October 1st,” it said.

CONCLUSION

  • Infosys CEO Salil Parekh said that the company will pay a special bonus in the quarter to December, while paying 100% variable pay in the previous quarter. Infosys said the demand for its services is increasing as clients spend more on technology.
  • Infosys reported a 20.6% rise in September-quarter profit, helped by growth in client demand for its new-age digital services such as cloud, data and analytics during the pandemic

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