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IT services major HCL Technologies (HCL) today announced it is issuing a one-time special bonus worth 700 crore to employees around the world, in recognition of its recent milestone of crossing the $10 billion mark in revenue for 2020. All employees with one year of service or greater will receive a bonus, the equivalent of ten days’ salary.

As of December 31, 2020, HCL’s full time employee headcount stood at 159,682. HCL Tech's revenue had crossed $10 billion milestone in calendar year 2020, delivering 3.6% YoY growth in constant currency.

Achieving this historic milestone– just twenty years since HCL Technologies’ IPO – is a testament to the passionate efforts and consistent achievements of its employees, HCL Tech said in a statement.

“Our employees are our most valuable asset. Despite an unrelenting pandemic, each and every member of our HCL family has demonstrated immense commitment and passion, contributing to the growth of the organization," said Apparao VV, Chief Human Resources Officer, HCL Technologies.

"The $10 billion revenue milestone is a testament of our remarkable resilience as an organization and the entrepreneurial spirit of our 159,000+ employees. With this gesture, we want to sincerely express our gratitude to our employees and their families for all their support."

The special bonus will be paid to employees in February 2021, amounting to approximately $90 million plus payroll taxes in some countries, the impact of which is excluded from the FY21 EBIT guidance provided by the company last month, HCL Tech said.

In the recent December quarter, HCL Tech's revenue rose to 19,302 crores, up 3.8% QoQ and up 6.4% YoY, while profit jumped to 3,982 crore, up 26.7% QoQ and up 31.1% YoY

Revenue expected to grow QoQ between 2% to 3% in constant currency for Q4, FY’21, including DWS contribution. Margin expected to be between 21.0% and 21.5% for FY21.

HCL Tech's shares have surged 60% in the past one year and many analysts remain bullish on the stock.

"We continue to maintain our positive outlook on the IT sector. The bar is raised to positive unchartered territory with the classic bundling of (1) constructive market environment (cloudification, enterprise growth acceleration), (2) in-built and rising competitive advantage, and (3) superior execution (with an upside risk to operational performance)," said Apurva Prasad, Institutional Research Analyst, HDFC Securities, and Amit Chandra, Institutional Research Analyst, HDFC Securities, in a note.

"The Indian IT sector’s competitive advantage continues to improve (50% of incremental market share within global majors) and the pandemic has further unleashed sectoral tailwinds of a multi-year accelerated digitisation/cloudification. Tier-1 IT incremental revenue addition is set to double as compared to prior period addition, translating to a 12% CAGR in USD revenue over FY21-23E," they said.

The brokerage's top picks in the sector includes Infosys, HCL Tech and Persistent.

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