IT major Infosys is rolling out an average variable pay of 60 per cent, lower than previous quarters, for its employees for the quarter ended March 2023. This comes as the IT sector bears the brunt of the global slowdown and is seeing a moderation in growth momentum.
While 60 per cent is the average payout to all employees, the total variable pay will differ for individuals depending on their respective unit and department guidelines.
In an internal mail reviewed by businessline, the company wrote to employees, “The average bonus payout for Q4 FY’23 is 60 per cent at an organisation level and your final individual payment will be governed by your Unit/Department guidelines. The Performance Bonus payment for Delivery (DEL) and Business Enabling Functions (BEFS) for Q4 FY23 is scheduled to take place in the payroll of May 2023.”
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Infosys in the second quarter had rolled 65 per cent average variable pay and 70 per cent in the first quarter. The average has been on a declining trend.
“While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market with unforeseen events. As we remain vigilant to the changes in the market, we must also see this as an opportunity to rally as a group and remain committed to navigating the changing business landscape,” the company added in the mail.
Q4 results
Infosys reported a 7.8 per cent year-on-year (y-o-y) rise in its fourth quarter net profit at ₹6,128 crore, missing street expectations. On a sequential basis, the profit dipped 7 per cent from ₹6,586 crore in Q3, weighed down by a tough macro-environment.
Revenue from operations stood at ₹37,441 crore, indicating a 16 per cent y-o-y rise; while it dipped 2.3 per cent from ₹38,318 crore in Q3. In constant currency terms, the company’s revenue rose 8.8 per cent y-o-y and dipped 3.2 per cent q-o-q.