Infosys may delay annual salary hike due to global uncertainties
NEW DELHI New Delhi: IT giant Infosys has deferred the annual salary hike to the fourth quarter of FY 2024-25. The company last implemented the salary hike in November 2023. The delay in the salary hike, which is usually implemented at the beginning of the year, shows that the domestic IT sector is still facing uncertainties. The reason for the slowdown is said to be that customers are not increasing their IT spending due to macro-economic conditions, including potential tariffs under the new Donald Trump administration, which will start working from January 20.
Not only Infosys but some other big IT companies like HCL Tech, LTI Mindtree and L&T Tech Services also did not raise salaries in the second quarter this year to manage costs and profits. About Infosys, Motilal Oswal Financial Services had said in its pre-earnings note that Infosys’ margins may decline in the December quarter. This has happened due to employees going on leave and fewer working days. However, this will be compensated by price increases, subcontractor cost optimization and ‘Project Maximus’.
‘Project Maximus’ is Infosys’ margin improvement plan and aims to reduce costs. In the second quarter (July-September) of the current financial year, the company’s profit grew 4.7 percent year-on-year to Rs 6,506 crore, from Rs 6,212 crore in the same quarter a year ago. The company’s income in the second quarter was Rs 40,986 crore. This figure was Rs 38,994 crore in the same quarter of the previous financial year. In the September quarter, Infosys raised its income growth forecast for the year from 3.75 per cent to 4.5 per cent. During this period, the IT giant also announced a dividend of Rs 21 per share.
