Infosys, the prominent Indian IT services giant, is set to reward its employees with an impressive 80% average variable pay for the quarter that concluded on June 30. The company is planning to disburse this variable pay along with the employees’ August salaries. The announcement was made through an email from the Human Resources team to all employees. The rationale behind this move is the company’s commendable performance during the June quarter of FY24.
In the email communication, Infosys emphasized the successful achievement of robust performance metrics in Q1, which in turn has established a strong foundation for future growth and expansion. The company maintained its dedication to supporting businesses in their digital transformation endeavors and addressing the evolving needs of its clients.
During Q1FY24, Infosys exhibited an 11% increase in net profit compared to the previous year, amounting to Rs 5,945 crore. The company’s revenue reached $4,617 million in dollar terms. Notably, the operating margin for the quarter stood at 20.8%, representing an 80 basis points increase from the corresponding quarter of the previous year. However, the operating margin witnessed a marginal decline of 20 basis points on a quarter-on-quarter basis from the March quarter’s 21%. Furthermore, Infosys secured substantial deals worth $2.3 billion during this period.
It is noteworthy that the company adjusted its revenue projection for FY24, revising it downward to a range of 1-3.5%. This modification was made in comparison to the previous projection of 4-7% growth.
Salil Parekh, CEO of Infosys, expressed satisfaction with the Q1 results, noting a growth rate of 4.2% and significant deals worth $2.3 billion. These achievements have laid a strong groundwork for the company’s future expansion. Parekh highlighted the expanding success of the company’s generative AI capabilities, with around 80 active client projects. He further emphasized the positive reception of “Topaz,” their comprehensive AI offering, by clients. Parekh believes that Topaz has the potential to be transformative for clients and enhance the overall service portfolio of Infosys.
The recent email communication to employees also emphasized the management’s optimism for the upcoming quarters. The company aims to maintain its momentum by focusing on priorities, fostering collaboration across teams, and remaining adaptable to dynamic circumstances.
In comparison, for the preceding quarter (Q4FY23), Infosys had implemented an average variable pay of 60% for its employees.
Infosys’ decision to grant an 80% average variable pay showcases its commitment to recognizing and rewarding employee efforts, while the optimistic outlook for future quarters reflects the company’s confidence in its continued growth trajectory.
