Bad news for Infosys employees: IT major defers salary hikes

One of India's largest tech giants, Infosys, has deferred the payment hikes of its employees which it usually rolls out from April for its employees below the senior management level, according to a Moneycontrol report.

The recent news indicates the financial crunch the company is facing under the current macroeconomic situation at the national as well as international levels. Many of Infosys projects are cancelled or ramped down.

As per the yearly schedule, the company provides appraisal to its employees in the June quarter (Q1), however, this time the company deferred providing pay raise to its employees, people working at the company confirmed to Moneycontrol.

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The company scrip was trading -0.96% lower at ₹1336.15 apiece on BSE at 11 am on Wednesday. On the last day, Infosys' stock opened at ₹1,339.95 and closed at ₹1329.10 a piece on BSE. 

On the last day, Infosys' stock opened at ₹1339.95 and closed at ₹1329.10. The stock reached a high of ₹1351 and a low of ₹1327.45. The market capitalization of Infosys is ₹558,281.0 crore. The 52-week high for the stock is ₹1672.45, while the 52-week low is ₹1215.45. The BSE volume for the stock was 354,953 shares.

Generally, the company rolls out hikes for its senior management in July, but so far even the senior management hasn't receive any news about its salary hike till now, according to the news report. Last time, the tech major was forced to freeze salary hikes in the pandemic year of 2020 due to cash conservation, later the company provided appraisals in January 2021. 

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In the last quarter of FY22-23, Indian tech firms didn't perform so well as earnings of TCS along with firms like Wipro, suffered in teh April quarter. However, HCL Tech and TCS managed to make some recovery. On the other hand, Infosys almost remained at those lower levels and hence, market is expecting better numbers from HCL Tech, TCS and Wipro, observed Avinash Gorakshkar, Head of Research at Profitmart Securities.

 “Infosys had given practical guidance in comparison to other peers. So, I am expecting big jump in Infosys Q1 results for 2023,” said Vaibhav Kaushik, Research Analyst at GCL Broking.