Infosys Gives 2nd Salary Hike For 2.4 Lakh Employees In July; Will Hire 25,000+ Freshers; Share Buyback Confirmed
Bengaluru-based tech giant Infosys has some major announcements, right from witnessing a great quarter growth record, to a share buyback announcement and hiring new employees, along with giving a second round of salary hike to employees, in a period of only 6 months.
Today’s story will be packed with a list of major announcements involving the Indian IT major Infosys and its employees and shareholders.
Infosys to Buyback Shares Worth Rs 9,200 Cr
Trak.in had reported on Monday that Infosys was considering to propose a share buyback, due to the company’s exceptional profit growth and sales OF 5.9% recorded in the quarter ending December.
Infosys has announced buying back shares worth $1.2 billion, amounting almost to Rs 9,200 crore, and will pay a dividend of $850 million (about Rs 6,400 crore).
The tech giant will buy the shares from the open market for a price not exceeding Rs 1,750/share. Infosys also recommended a final dividend of Rs 15/equity share for the previous fiscal, states TOI.
This share buyback will be Infosys’ third in less than 5 years.
Due to clients’ demand for a digital overhaul of their businesses, to attenuate the disruptions caused due to the pandemic, a surge has been registered in Infosys’ orders and profits, with an anticipation of its revenue growing at 12-14% in FY22 on a constant currency basis.
Infosys to Process Pay Hikes In July
Infosys’ Chief Executive Officer Salil Parekh, while announcing results of the company’s fourth quarter of FY21, stated that Infosys will give its next round of salary hike in July 2021.
This will be the company’s second round of salary hike in six months, with the first hike effective January 1, 2021.
The hike represents the company’s improvement in business and consequent attrition rates.
While Rao did not disclose the exact quantum of hikes, it is expected to follow industry standards.
“We felt that July 1 was the right time, considering we have a phased approach to compensation. The target is to get back to regular appraisal cycles in the coming year”, says Rao.
Infy to Hire 25,000 Freshers
Infosys said that it will hire about 25,000 freshers rgis fiscal globally, with 24,000 from Indian campuses. It hired about 21,000 freshers from campuses in India and abroad during the last financial year.
For FY21 the company had hired 21,000 freshers, of this 19,000 from Indian campuses and 2,000 overseas campus.
The company had a total of 259,619 employees at the end of FY21, and utilisation rate of 87.7% for the quarter.
Hiring in the company is increasing, due to an increase in the attrition rate. Infosys also reported an attrition of 15.2% for the final quarter of FY21, while that for Q3 stood at 10%.