Infosys, an IT firm, has recently taken measures to address approaching challenges by reducing the average variable payout at an organizational level. For the fourth quarter of the financial year 2022-23 (FY23), the company has set the average variable payout at 60%.
This reduction follows previous adjustments in the first and second quarters of FY23, where the variable payout was successively lowered to 70% and 65% respectively. The performance bonus payment for delivery and business enabling functions for the fourth quarter of FY23 is scheduled to be included in the payroll of May 2023, as communicated by Infosys to its employees.
Infosys IT Company has stated that the final variable payment for each employee will be determined based on the specific guidelines established by their respective unit or department. While the company acknowledges that FY23 was a year marked by overall strong performance, they also recognize that the fourth quarter was impacted by a volatile market and unforeseen events. In response, Infosys urges its employees to view these challenges as an opportunity to unite as a group and navigate the evolving business landscape.
Aditya Mishra, the Managing Director and CEO of CIEL HR expressed that IT companies were previously optimistic about improvements expected in October-November. However, it now appears that these anticipated improvements will be postponed until early 2024.
In terms of financial performance, Infosys achieved a growth rate of 15.4% in revenue in constant currency terms during FY23. Although this fell below the lower end of the company’s guidance range of 16-16.5%, Infosys managed to meet its operating margin target of 21%, which was positioned at the lower end of the guided range of 21-22%. Looking ahead to FY24, Infosys has provided revenue guidance of 4-7% in constant currency terms, reflecting the challenges anticipated in the present fiscal year. The company expects the operating margin to range between 20% and 22%.
During the fourth quarter, Infosys reported a consolidated net profit of Rs 6,128 crore and revenue of Rs 37,441 crore, both of which fell below the estimates of industry analysts. These figures indicate the impact of the prevailing market conditions on Infosys’ financial performance.
