Indian IT services major Infosys Ltd will be rolling out 80 per cent variable pay on an average to its employees for the quarter ended June 30, which will be disbursed along with August salary.
The company announced this in an email sent from the Human Resources team to the employees. The email noted that the variable pay rollout comes at the back of "good performance" in the June quarter of FY24.
The email read: “We delivered a good performance in Q1, setting a robust foundation for future expansion. We remained committed to helping businesses accelerate their digital journeys and catering to emerging client requirements.”
For Q1FY24, Infosys reported 11 per cent rise in net profit year-on-year (YoY), coming in at Rs 5,945 crore. The revenue of the IT company came in at $4,617 million in dollar terms. Operating margin for the quarter stood at 20.8 per cent, up 80 basis points over 20 per cent in the year-ago quarter, but down 20 basis points QoQ from 21 per cent in the March quarter. Moreover, large deal wins came in at $2.3 billion.
It is worth noting that the IT major revised its FY24 revenue guidance downward to 1-3.5 per cent, as compared with 4-7 per cent that it was projecting earlier.
Salil Parekh, CEO of the company said after the Q1 results announcement, “We had a solid Q1 with a growth of 4.2 per cent and large deals of $2.3 billion which helps us to set a strong foundation for future growth. Our generative AI capabilities are expanding well, with 80 active client projects. Topaz, our comprehensive AI offering, is resonating well with clients. We see this being transformative for clients and enhancing our overall service portfolio.”
The email sent by the company to employees noted that the management was optimistic about the quarters ahead.
“By staying focused on our priorities, collaborating closely across teams, and remaining adaptable to changing circumstances, we are confident in setting ourselves up for a productive and optimistic quarter ahead,” the email read.
For Q4FY23, Infosys had rolled out an average variable pay of 60 per cent.
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