HCLTech, an exporter of IT services, revealed in its earnings call on Thursday that 85% of its workforce would receive variable pay for Q4 FY 2022-23.
Ram Sundarajan, Chief People Officer (CPO) of HCLTech, stated during the company's quarterly results call on Thursday that the variable pay for Q4 FY23 will be comparable to previous quarters, with 85% of the workforce receiving variable pay.
“Let us start with the variable pay question. I think it's a very top of the mind question for everybody. We are not making any changes to our variable pay plans. 85 percent of our workforce will be in a variable pay plan this quarter,” the CPO said.
The CPO added, "Variable pay is just about five per cent, so it's not a big percentage of employee compensation. So far as the policy is concerned the variable policy pay, there is no change in the policy."
A component of employee remuneration called variable pay is based on both an employee's and the company's performance.
The IT company announced on Thursday that its net profit increased 10.80% year over year (YoY), from Rs 3,593 crore in the March quarter to Rs 3,983 crore this year.
Additionally, the company reported a 17.70% YoY increase in net sales for the quarter, coming in at Rs 26,060 crore. This compares to the revenues of Rs 22,597 crore it reported during the same period last year.
Prateek Aggarwal, Chief Financial Officer, HCLTech, after the earnings announcement, noted: "FY '23 concluded with resounding growth of 18.5 per cent in INR and 13.7 per cent in CC, with EBIT at 18.2 per cent. This quarter, we have started publishing a new metric, Annual Recurring Revenue (ARR) for our Software business. It is heartening to note that ARR is at US$ 1 Bn+ level, which grew at 5.2 per cent YoY CC (ex. divested business).”
According to filings with the exchange, the company's Profit After Tax (PAT) was 14,851 crore, up 10% YoY, and its Earnings Per Share (EPS) was Rs 54.79. Additionally, the firm paid a quarterly dividend of Rs 18 per share.
The corporation stated that, despite the respectable figures, the guidance for the following fiscal year would be modest.