HCL Tech has decided to not give increment to senior staff this year. The decision comes after the company reported weak quarterly numbers on Wednesday. According to a CNBC-TV18 report, the decision was announced by company’s CFO. Prateek Aggarwal, Chief Financial Officer of HCL Tech, said that the decision will not impact the mid-senior level and junior staff of the company. However, the report states that the appraisal will be rolled out with a delay of a quarter.
The company says that these measures have been taken to be more cost-efficient and to attain the targets set for this year. The muted June numbers have accelerated the decision. Tech sector has been facing slowdown due to weak profitability and lesser spending on technology.
Announcing the quarterly results on Wednesday, the company pegged its revenue growth in the range of six percent and eight percent yoy in constant currency. Missing the estimates, HCL Tech reported a 7 per cent increase in the net profit to Rs 3,534 crore for Q1. In June quarter, HCL Tech’s bookings fell to about $1.6 billion, said CEO and MD C Vijayakumar. The ongoing slowdown stress has also impacted the company’s clientele.
According to the official data, HCL Tech has now 127 clients. There is a reduction in number as compared to 131 in March quarter. Meanwhile, IT giant TCS also announced its June quarters numbers on Wednesday. On Wednesday, TCS HR head said that more than half of the workforce is back to office. Most of them are working from offices three times a week, the HR head said. TCS had suffered a wave of resignations, predominantly from its female employees, after it discontinued the ‘work from home’ policy.
HCL Tech is not only IT company that has either deferred the increment of the workforce. Latest reports say that Infosys has also not given appraisal letters to its staff yet. Infosys is set to announce its Q1 numbers later this month.
