HCLTech boosts salaries by 7% amid profit surge
NOIDA, INDIA — HCL Technologies (HCLTech), a prominent IT services company, has announced a salary increase for its employees starting in October.
This decision follows the company’s strong financial performance in the July–September quarter, where it reported a 10.51% increase in consolidated net profit, reaching ₹4,235 crore (US$503 million).
General salary increase details
Chief People Officer Ramachandran Sundararajan revealed that the average salary increase for HCLTech employees in India is approximately 7%. He highlighted that this move is part of the company’s strategy to reward its workforce while ensuring operational efficiency.
“We need to look at wage hikes at a country level and predominantly India is where we’ll have the majority of our employees,” Sundararajan stated.
Significant raises for top performers
In addition to the general salary hike, HCLTech is offering substantial raises for top performers, with increases ranging from 12% to 15%.
“Our top performers will continue to get double-digit increases,” Sundararajan added, emphasizing the company’s commitment to recognizing exceptional talent.
Country-specific salary adjustments
Sundararajan mentioned that salary adjustments outside India would be influenced by local factors such as statutory obligations and collective bargaining agreements.
“We need to look at each country differently,” he explained, highlighting HCLTech’s tailored approach in its global operations.
Impact on operating margins
While these salary hikes are expected to impact operating margins modestly, HCLTech plans to mitigate this through efficiency measures. The company anticipates a slight expansion in its operating margins in upcoming quarters, driven by strategic cost management.
Financial performance and market context
HCLTech’s decision to implement salary increases comes on the heels of robust financial results.
The company reported a 10.51% year-on-year increase in net profit for the quarter, exceeding market expectations. Revenue from operations rose by 8.2% compared to the previous year, reaching ₹28,862 crore (US$3.43 billion).
Employee headcount and strategic hiring
As of September 30, HCLTech’s total employee count was 218,621. Despite a net reduction of 780 employees in the last quarter, the company added 2,932 freshers. Women comprise 28.8% of the workforce, reflecting HCLTech’s commitment to diversity.
The company continues to focus on hiring specific skills in high-demand areas such as data and AI. Sundararajan noted that significant hiring efforts are underway to meet these needs.
By implementing these salary hikes and focusing on strategic growth areas, HCLTech aims to maintain its competitive edge in the challenging IT sector landscape.
