Employees of HCL Technologies woke up to the news of getting 10 days’ salary as a one-time bonus in February as the company celebrates $10 billion revenue milestone. The bonus will be applicable to those who have completed at least a year with the firm.
HCL Tech reported $10 billion in revenue for the year ending December 2020. The employee bonus payout is worth over Rs 700 crore.
In an interaction with Moneycontrol, VV Apparao, chief human resources officer, said, “We have (reported) $10 billion plus in calendar 2020 and given the pandemic and associated problem we went to, it is a great milestone we need to celebrate.”
“We thought the employees are the first ones we should address. We definitely want to celebrate this event. Symbolically, a 10-day salary for achieving 10 billion also resonated well,” he explained.
That is why the bonus will be applicable to employees across the globe who have completed at least a year with the company.
“See this is a long-term achievement. Someone who has joined a few days back and treating them on the same platform as someone who has joined 20 years back is probably not right,” Apparao explained.
The company currently has about 159,682 employees at the end of December 2020 quarter.
“If you look at the population, we are covering about 120,000. We are covering 80 percent of the population. This is pretty much a broad brush that the entire organization is getting covered,” Apparao said.
These employees would have 10 days of their CTC as a bonus.
The bonus, which the company will pay in February, was not taken into account for the FY21 EBIT guidance provided. Apprarao said that this was a one-time impact that would get into the P&L. The company gave 21-21.5 percent for the EBIT margin guidance for FY21.
The $10-billion revenue has come at the back of the investments HCL Tech moves over the last few years and accelerating adoption of digital.
HCL Tech CFO Prateek Aggarwal said in an earlier interaction that, at the back of the pandemic, enterprises across the board were accelerating their technology adoption and the process would take years to be completely digital.
According to Aggarwal, given the size of IT landscape that most of its customers have, be it Fortune500 companies in the US, it will take years to change to digital technologies like cloud migration or to be nimbler to serve their customers better.
“I see at least a 3-5 year kind of technology upcycle. As far as HCL is concerned, we have invested quite in advance,” he added. This includes investment in its Mode 2 and Mode 3, which are digital technologies and products and platforms, over the last few years.
“They are starting to bear fruit. It propelled us to become a $10-billion company now,” he added.
This is already reflecting in the deals the company has signed. The company is looking at double digit growth in the IT services segment for FY22.