Infosys rolls out variable pay, employees to get just 60%
1 min read 18 May 2023, 03:13 PM ISTInfosys said the payout will be given along with the salary for May 2023. While the average payout is 60 per cent, an employee’s final variable payout will depend on their unit or department’s guidelines.
PremiumInfosys’ average variable payout for the January-March quarter of fiscal 2022-23 has been reduced to 60 per cent at an organisation level, amid the increasing stress on the IT sector, according to reports. The payout will be given along with the salary for May. While the average payout is 60 percent, an employee’s final variable payout will depend on their unit or department’s guidelines, and varies for different pay grades and departments.
In its internal email, Infosys noted that the company had an overall strong performance in FY23 but also mentioned the market volatility and unexpected events of the recent quarter. The email read, “While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events."
In the first quarter of FY23, Infosys had lowered variable payout to 70 percent, which was then reduced to 65 per cent in Q2FY23.
The IT giant reported a sequentially weak quarter in the period ending March 31, 2023. The company's profit-after-tax for Q4 came in at ₹6,128 crore down by nearly 16 per cent sequentially.
Also Read: Infosys Q4 Results: Posts lower-than-expected quarterly earnings, weakness in BFSI verticals
While revenue also dipped by 2.2 per cent QoQ to ₹37,441 crore. In constant currency, the company's revenue growth came in at 3.2 per cent QoQ and 8.8 per cent year-on-year. The operating margin stood at 21 per cent in Q4.
The company also declared a final dividend of ₹17 per share for FY23. Infosys' rival TCS had also missed street's estimates in the fourth quarter.
"We have expanded our internal program on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients,'' said Infosys CEO Salil Parekh in a post conference after the declaration of Q4 results.
On May 18, shares of Infosys settled 0.20 per cent higher at ₹1,249.95 apiece on the BSE.
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