- HCL Technologies shares rally nearly 5 pct on robust earningsWipro Q3 net profit up 27 per cent at Rs 2,010 crore, beats estimates, Azim Premji sees 'optimism in West'Wipro keeps market faith, revenue growth jumps to 2.9% q-o-qReiterate 'top pick' status on HCL Technologies shares: Nomura
India's third-largest software services exporter Wipro, which posted encouraging earnings for the recently concluded December quarter, said it will dole out its wage hike for this year effective June 1, 2014. However, the company did not specify the quantum of salary increase.
“We will go ahead with our salary increases effective June1 as we have planned. We have not yet decided on the quantum of hike. It is too early to decide, we have five more months to go,” Wipro's Saurabh Govil, senior vice-president (HR), told FE.
“However, the hike will be differentiated and much more focused on certain skills category which are scarce and we will work on it,” he said. Last year, Wipro announced an average hike of 6-8% for its employees in India.
The IT major's announcement of wage hike coming almost six months ahead of its annual pay cycle indicates that the Bangalore-based company is confident of its steady growth seen during the last two quarters of the current fiscal. “We are trying to bring predictability to whatever we do, including our customer base and employees. It is important for our employees to know when the hikes will be announced. We don't want a situation that people have to debate on the wage hike. For the past three years, we have maintained this pay cycle despite the overall demand environment,” said Govil.
For the October-December period, Wipro reported one of the highest sequential rise in dollar revenue growth among the top-tier Indian IT pack. The Azim Premji-led company posted 2.9% dollar revenue growth for the third quarter ended December, the highest sequential increase in the last eight quarters.
However, the growth at Wipro occurred despite the IT firm continuing to show a decline in its overall headcount. At the end of the third quarter, the total headcount stood at 1,46,402, a decline of 814 people when compared to the second quarter. Wipro's net utilisation excluding trainees remained at 74.3%, which is around 10% points below that of peers TCS and HCL technologies.
“On the utilisation front there is a slight improvement, but we feel there is head space from an operation point of view. We can still improve our utilisation rate further,” said Govil.