BackMindtree announces salary hike for employees, effective January 1
Mindtree CEO said the company completed its promotion cycle in the second quarter
PremiumIT firm Mindtree has said that it will undertake salary hike for employees effective January, joining many other peers in rolling out pay hikes for staff. Mindtree had 21,827 employees at the end of the September quarter.
Mindtree Chief Executive Officer and Managing Director Debashis Chatterjee said the company completed its promotion cycle in the second quarter, and will undertake salary increments effective January 1, 2021.
He added that the increase will be in line with industry standards, and that the company will continue to hire based on business requirements.
This announcement as made as the company announced its quarterly results on Thursday.
India's second-largest IT services firm Infosys earlier this week while announcing its quarterly results also said that it will roll out salary hikes and promotions across all levels effective January 1.
Last week, India's biggest IT company TCS said that salary hike for its employees will be rolled out effective October 1.
In dollar terms, net profit of Mindtree rose 79.2% to $34.3 million, while revenue declined by 3.7% to $261 million in the September 2020 quarter over the year-ago period. At the end of the September 2020 quarter, the company's active client base stood at 283, and eight new clients were added during the quarter, the filing said.
The board of directors has declared an interim dividend of ₹7.5 per equity share.
North America market contributed 77.4% of Mindtree's revenue in the September 2020 quarter, while Continental Europe, UK and Ireland, and Asia Pacific contributed 7.5%, 7.9% and 7.2% respectively.
The company attributed the strong growth in profits to operational efficiencies.
"The world is slowly emerging from the challenges caused by the pandemic...we achieved our commitment of delivering profitable growth, quarter-over-quarter, and also successfully navigating through the challenging business environment," Mindtree Chief Executive Officer and Managing Director Debashis Chatterjee told reporters in a virtual briefing.
He added that the company's pipeline continues to be strong. "Also with the broad growth, we are also seeing a healthy win ratio."
He also said that on the demand side, the company is seeing momentum as customers are looking for solutions to tackle near-term challenges as well as embark on a transformational journey for future growth.
"We anticipate growth momentum for the next quarter, despite it being a seasonally weak quarter, with revenue momentum on track and our continued focus on driving operational efficiencies," he said. (With PTI inputs)
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