HCL Tech Salary Hike October 2024, HCL Tech to give 7% salary hike in October, top performers to get up to 15%
HCL Tech Salary Hike October 2024 : Information technology firm HCLTech will implement a 7 per cent salary hike from October. Top performers are set to get a hike of up to 12-15 per cent. The company’s chief people officer Ramachandran Sundararajan said the company expects the salary hike to have minimal impact on its operating margins in the December quarter. “We have decided to go ahead with the hike. It will be the same as last year, which means the hike will be effective from October, that is, this month,” Sundararajan said during the company’s second quarter earnings conference call.
However, top performers will get double-digit hikes in performance-based salary hikes. “Top performers will continue to get double-digit hikes in the range of 12-14%,” Sundararajan said.
India’s third-largest IT services major had a workforce of 2,18,621 as of the second quarter. Brokerage firm Jefferies had expected a 110 basis points (bps) sequential expansion in operating margins mainly due to changes in the salary cycle and the usual seasonal jump. HCL Tech Salary Hike October 2024, Several major Indian IT companies have shifted salary hikes to the third quarter of FY25 to manage costs and maintain profitability amid a sluggish demand environment.
Apart from HCLTech, services exporters such as Infosys, LTI Mindtree and L&T Tech Services have also deferred salary hikes, according to recent brokerage reports and analysts.
HCLTech announces salary hike, top performers to get 12-15% hike
Sundarajan said the number of HCLTech employees eligible for salary hikes will depend on the company’s review cycle and the proportion of lateral hires who become eligible after completing one year of service. “The number of individuals eligible for a hike during a given cycle is a function of that and performance,” he explained.
Sundarajan acknowledged that the salary hikes will have a slight impact on operating margins, but the company is actively working to offset this through efficiency measures. These salary hikes follow HCLTech’s established annual compensation review process, as in previous years.
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The Noida-headquartered firm’s employee count declined by 780 in the second quarter ended September 30, 2024. HCL Tech Salary Hike October 2024, For the quarter, net profit grew 11 per cent year-on-year to Rs 4,235 crore, beating Street expectations. Revenue from operations rose to Rs 28,862 crore, up 8.2 per cent from a year ago.
On a sequential basis, HCL Tech’s Q2 net profit declined marginally by 0.5 per cent, while revenue grew nearly 3 per cent quarter-on-quarter. EBIT margin stood at 18.6 per cent, up 149 basis points sequentially.
Salary hike will not impact margins
Sundarajan said the salary hike in the December quarter is expected to have minimal impact on the company’s operating margins. HCL Tech is actively working to minimise this impact through efficiency measures.
The number of employees eligible for salary hikes will depend on the company’s review cycle and the proportion of lateral hires who become eligible after completing one year of service. As of the second quarter, HCL Tech’s headcount stood at 218,621, down by 780 from the previous quarter.
The move follows the company’s established annual compensation review process. This comes at a time when many major Indian IT companies have shifted salary hikes to the third quarter of FY25 to manage costs and maintain profitability amid a sluggish demand environment.
HCL Tech’s second quarter performance was better than market expectations, with EBIT margins at 18.6%, up 149 basis points sequentially. The company continues to focus on efficiency and growth while investing in its employees.
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