HCL Tech Announces to Roll Out Salary Hikes for Employees, Q2 Net Profit Rises 7% at Rs 3,142 crore

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Parth Dubey
I am Parth Dubey, currently an undergraduate. I have been working as a content writer for the past 6 months and have worked in various fields with many people and firms. I firmly believe that writing is not just about money making or attracting people, it's more about knowledge and information, along with feelings.

HCL Technologies Ltd said on Friday that it will roll out salary hikes for its employees. Employees who are in the E0-E3 band will get hikes from October. While for E3 and higher, increments will be effective from January 2021. President and CEO, C Vijayakumar said about this while announcing the company’s quarter two earnings. The second quarter of the company is from July to September.

HCL Technologies starts operations in Sri Lanka, to create over 1,500  employment opportunities - The Economic Times
Image: The Economic Times

Details About The Official Announcements By HCL :

He said, “The solid growth in quarter two has given us the confidence for the full year. The increments will be the same as in FY 20.”

Earlier this week, TCS, Infosys, and Wipro announced salary hikes as a gift to their employees. This is a sign that IT companies saw signs of high demand for their core software services in September. HCL Technologies has recorded a net profit of Rs. 3,142 crore for September quarter, up 7.4% sequentially QoQ whereas, 18.5% year-on-year.

Revenue grew 4.2% QoQ to Rs. 18,59 crore. From Rs 17,528 crore in the corresponding quarter last year, with a sequential growth of 4.5% in constant currency terms. The earnings before interest and tax margin were at 21.6%(versus 20.5%, QoQ).

HCL has signed 15 transformational deals in September 2020 quarter, led by key industries including life sciences and healthcare, manufacturing, and public services. The company talked to the media. “There was a broad-based performance in quarter two with high growth. All verticals and geographies returning to smart positive sequential growth.” Company said.

The experts and companies expect revenue growth to be an average of 1.5-2.5% QoQ in constant currency terms. The company expects FY21 EBIT to be between 20.0% and 21.0%. HCL’s Mode 1-2-3 strategy has become the growth blueprint of the company. Mode 1 experienced 4.3% growth by infrastructure, Mode 2 grew by 6.9%, whereas, Mode 3 grew by 2%.

HCL commits to not cut salaries or jobs; honours promised bonuses as well |  TechGig
Image: TechGig

“Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times. It has positioned us strongly to leverage the emerging market opportunities,” Vijayakumar said.

Due to the COVID-19 pandemic, 96% of employees are working from home with 4% coming physically to offices. Last month, HCL Technologies overtook ICT Ltd (India’s largest cigarette manufacturer). It became India’s 10th most valued firm by capitalization in the market on the BSE.

 

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