A recent media report revealed that Infosys has deferred the salary hike to the fourth quarter of the current financial year (Q4FY25).
How Did This Happen?
It appears that the country’s second-largest IT company last rolled out salary hikes in November 2023.
The hikes are usually rolled out earlier in the year.
Reportedly, several other big IT companies like HCLTech, LTIMindtree, and L&T Tech Services skipped salary increments in the second quarter to manage costs and sustain profitability besides Infosys.
The company announced its plans for phased wage hikes in Q4 on October 17.
“Some part of that will be effective in January and the balance will be effective in April,” informed by the Chief Financial Officer Jayesh Sanghrajka during a press conference following the Q2 results.
The company reported a net profit of Rs 6,506 crore during the second quarter, marking a 2.2% quarter-on-quarter increase but falling short of market expectations.
Improvement In Margins
Infosys’s margin also improved by 10 basis points said to be driven by reduced onsite costs, higher utilisation rates, and enhanced operational efficiencies.
Further, the company has revised its FY25 revenue guidance upward to 3.75-4.5%, an increase from the earlier projection of 3-4%.
Infosys has earlier announced an average performance bonus of 90% to eligible employees for the July-September quarter of FY25 (Q2FY25).
The company has disbursed the bonus with November-end salaries with the primarily benefits mid-to-junior-level staff in delivery and sales units, which make up the majority of the company’s 3.15 lakh workforce.
Media reported that the Bengaluru-based IT giant offers an average bonus of 90%.
Although, the actual percentage varies based on individual performance and contributions.
Infosys this quarter’s bonus is notably higher than the 80% average distributed during the April-June period (Q1FY25).
