HCLTech has announced a 7% salary hike for its employees, set to take effect in October 2024. The company, which has consistently focused on employee development and performance, will reward top performers with raises of up to 15%, recognizing their contributions during a time of solid financial growth. According to Chief People Officer Ramachandran Sundararajan, the company remains committed to supporting its workforce while maintaining its growth trajectory.
Strong Financial Performance in Q2 FY24
The salary hike announcement comes on the back of HCLTech’s 11% year-on-year growth in net profit, which rose to ₹4,235 crore for the second quarter of the fiscal year ending September 30, 2024. Revenue from operations also grew by 8.2% to reach ₹28,862 crore. The company’s performance exceeded market expectations, with an EBIT margin of 18.6%, representing a sequential increase of 149 basis points.
Minimal Impact on Operating Margins
Despite the salary hike, HCLTech expects the increase to have a minimal impact on operating margins for the December quarter. Sundararajan emphasized that the company is implementing efficiency measures to offset the potential impact of the wage adjustments, ensuring continued profitability and operational strength.
HCLTech’s Workforce and Compensation Strategy
HCLTech’s headcount stands at 218,621, reflecting a slight decrease of 780 employees compared to the previous quarter. The number of employees eligible for the hike will depend on the company’s annual review cycle and the eligibility of lateral hires, who qualify for the raise after completing a year of service. The wage increase aligns with HCLTech’s annual compensation review process, which remains a key element in the company’s strategy to retain talent and foster long-term growth.
HCLTech’s Approach in a Challenging Market
HCLTech’s salary hikes follow a trend among Indian IT companies, many of which have delayed raises to manage costs amid a sluggish demand environment. However, HCLTech’s strong Q2 results, marked by growth in both revenue and margins, have allowed the company to proceed with its wage increase without compromising financial stability.
The company continues to balance efficiency, profitability, and workforce investment, reinforcing its position in the competitive IT services landscape.
