IT services major LTIMindtree will be rolling out annual salary increments in the October-December quarter or Q3 for the financial year 2025, CEO and MD Debashis Chatterjee said on July 17.
This comes at a time when the IT sector is seeing a slow-paced recovery from the industry-wide demand slowdown.
In FY24 too, LTIMindtree had delayed its wage hike cycle, which typically begins in the month of April, to August. Last year, employees had received single digit increments in the range of 1-2 percent, while several of them also got zero percent hikes that had caused an outrage among people on internet forums.
Chatterjee said, “We are seriously looking at the wage hike cycle in the later half, second part of the year…We are definitely considering Q3.”
When asked about the range of increments that the company will be looking too offer this year, he added, “In terms of specifics we are still working on it. But it will be in line with the overall market environment and what happens in the market.”
Meanwhile, Tata Consultancy Services (TCS) had concluded its annual increments process for FY25 as of the quarter ended June 30, 2024. TCS had rolled out wage hikes in the range of 4-5 percent with double-digit hikes for top or exceptional performers starting from April 1.
Demand environment
Chatterjee highlighted that the demand environment has started to recover with some green shoots. He is seeing early signs of customers “beginning to deploy the savings and additional budgets towards kicking off high priority transformation programmes and making foundational investments for AI.”
“Though the market environment remains unchanged, we see some green shoots of recovery. Clients continue to focus on efficiencies via cost take out or vendor consolidation deals,” he said during the company’s Q1 earnings conference.
He added, “We are seeing this playout more in BFSI and technology, media and communications – our largest verticals. The ramp up in deals from previous quarters have begun to reflect in our revenues.”
LTIMindtree reported its Q1 earnings on July 17. The company reported a decline of 1.5 percent decrease in net profit at Rs 1,135 crore as against Rs 1,152 crore in the year-ago period. On a sequential basis, it was up by 3.1 percent.
Revenue from operations rose to Rs 9,142 crore in Q1FY25 from Rs 8,702 crore in Q1FY24, an increase of 5 percent on an annual basis. Sequentially it grew by 2.8 percent.
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