HCLTech sees headcount reduction in Q1FY24, defers pay hikes

HCLTech sees headcount reduce in Q1, defers hikes by a quarter
HCLTech retained FY24 revenue guidance at 6-8% in CC and EBIT margin at 18-19%. The attrition rate for the quarter remained at 16.3%, down 7.5% YoY.

HCLTech, a leading global technology company, announced its financial results for Q1FY24, the quarter ended June 30, 2023.

C Vijayakumar, CEO, and Managing Director, HCLTech, said, “In Q1FY24, our revenue and people strength sequentially moderated in line with the demand environment.”

“We delivered a 6.3% YoY growth in constant currency. We experienced strong growth in our largest verticals—Financial Services, Manufacturing, and Life Sciences and Healthcare—fueled by large deals. These large deals helped offset cuts in client discretionary spending in these verticals”, C Vijayakumar added.

C Vijayakumar further said, “We are expecting other verticals to pick up as well shortly. This, combined with the strength of our record-high pipeline, enables us to maintain our guidance for the year.”

The technology company has deferred salary hikes for their employees by one quarter.

According to the reports of money control Chief People Officer Ramachandran Sundararajan said, “Typically, this time of the year, we make our announcements on pay reviews.”

“Last couple of years the hiring that we have done and the compensation reviews that we have done, we have taken that into consideration and have taken a decision to defer our annual reviews by a quarter,” Ramachandran Sundararajan added.

Infosys has deferred the salary hikes of its employees which it usually rolls out from April for its employees below the senior management level.

Usually, Infosys rolls out pay hikes for employees below the senior management level in the month of June quarter, but employees yet have not received any communication from the company.

TCS has rolled out an annual salary increase with effect from April 1st. The company has given a 12-15% raise for exceptional performers in the latest annual compensation review and also commenced the promotions cycle

HCLTech retained FY24 revenue guidance at 6-8% in CC and EBIT margin at 18-19%. The attrition rate for the quarter remained at 16.3% from 19.5 % in the preceding March quarter of fiscal 2022-23. The company announced a dividend of ₹10 per equity share. The company has 223,438 people across 60 countries.

The total workforce as on 31 March 2023 stood at 225,944. The company’s headcount on a net basis has declined by 2,506 employees. During Q1FY24, HCL Tech hired 1,597 freshers and the company onboarded over 4,480 freshers in the March quarter.


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