HCL Tech to defer hikes for senior employees as Q1 FY 2023-24 results fall weak

Indian IT services company HCL Tech is planning to defer hikes for senior employees as the Q1 results for FY24 was lower than the expectations. The revenue fell 1.2% to Rs 26,296 crore, as compared with the forecast of Rs 26,884 crore.

In an interview to Business Today, HCL's CFO Prateek Aggarwal has said that the pipeline of the company is strong despite the Q1 numbers being weak.

“While the Q1 numbers have been weak, the good news is that our pipeline is at its highest ever. We have seen sequential growth of almost 18% and a year-on-year growth of 26%. Additionally, some deals in the pipeline are at an advanced stage”, Prateek Aggarwal told Business Today.

Also Read: Infosys withholds pay hikes for employees below senior management level: Report

The CFO also mentioned that the company is taking active measures to compensate the revenue loss. He mentioned that salary hikes would be defered for senior staff members and the variable pay for others would also be cut.

“Based on the actions we have announced, we are confident in returning to the 18%-19% range. The actions include wage increment deferrals for senior staff and a decision on junior staff increments to be made in October. Variable pay will be determined in line with company policies and results”, Prateek Aggarwal told Business Today.

Meanwhile, he has expressed confidence that the strong pipeline would reflect in numbers in the second half of the current fiscal.