Infosys Might Postpone Annual Salary Increase Due to Global Instabilities
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New Delhi, Jan 6 (NationPress) The leading IT company Infosys has been reported to have postponed its annual salary increase for the fourth quarter of FY 2024-25. The last time a salary adjustment was made was in November 2023.
The delay in implementing the salary increase, typically executed at the start of the year, suggests that the domestic IT landscape continues to grapple with uncertainties.
The slowdown is attributed to clients refraining from boosting their IT expenditure due to prevailing macroeconomic challenges, such as potential tariffs associated with the upcoming Donald Trump administration, which is set to take office on January 20.
In addition to Infosys, several other major IT firms, including HCL Tech, LTI Mindtree, and L&T Tech Services, also opted not to raise salaries in the second quarter this year in an effort to manage costs and profits.
In reference to Infosys, Motilal Oswal Financial Services indicated in its pre-earnings analysis that Infosys' margins might experience a downturn in the December quarter.
This decline is linked to employee leaves and the reduced number of working days. However, this impact is expected to be mitigated through price hikes, optimization of subcontractor costs, and the implementation of ‘Project Maximus’.
‘Project Maximus’ is Infosys' strategy aimed at improving margins, with the objective of reducing expenses.
During the second quarter (July-September) of the current financial year, the company's profit saw a year-on-year growth of 4.7 percent, reaching Rs 6,506 crore, up from Rs 6,212 crore in the corresponding quarter last year.
The company's income for this period stood at Rs 40,986 crore, an increase from Rs 38,994 crore in the same quarter of the previous financial year.
In the September quarter, Infosys revised its income growth forecast for the year, increasing it from 3.75 percent to 4.5 percent. During this period, the IT giant also declared a dividend of Rs 21 per share.
