Infosys boosts employee variable pay to 80% for Q1FY24 following good performance

One of India's leading IT services companies, Infosys, has announced a significant 80% average variable pay for its employees for the quarter ending on June 30. This decision follows a commendable performance in the first quarter of the fiscal year 2024. The distribution of variable pay is scheduled to coincide with the disbursement of August salaries

In an email from the Human Resources department to the employees, the company conveyed its commitment to fostering growth and embracing evolving client needs. The email wrote, “We delivered a good performance in Q1, setting a robust foundation for future expansion. We remained committed to helping businesses accelerate their digital journeys and catering to emerging client requirements.”

Infosys' financial report for Q1FY24 highlighted an 11% YoY increase in net profit, with a revenue of $4,617 million. Operating margins for the quarter stood at 20.8%, exhibiting an 80 basis point growth compared to the same period last year. Notably, while the operating margin was down 20 basis points QoQ from the previous quarter, the company achieved large deal wins amounting to $2.3 billion.

The FY24 revenue guidance, however, saw a revision, with Infosys lowering expectations to a range of 1-3.5%, a decrease from the earlier projection of 4-7%. 

This variable pay adjustment marks a notable increment from the previous quarter's 60% variable pay. Infosys continues to position itself for growth and expansion, leveraging its generative AI capabilities and comprehensive AI offering, Topaz, to enhance service delivery and transform client experiences.

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