HCL announces one-time bonus of over Rs 700 crore for employees

HCL Technologies announced a one-time bonus to all employees who have been with the company for more than one year. This bonus, the company said, is worth over Rs 700 crore, and will be the equivalent of 10 days’ salary. HCL has over 1.59 lakh employees.

HCL said that it was in recognition of crossing the $10 billion mark in revenue for 2020. The bonus will be paid to employees this month.

“Achieving this historic milestone in technology, business and engineering services and software – just twenty years since HCL Technologies’ IPO – is a testament to the passionate efforts and consistent achievements of its employees, many long term, deep relationships with leading companies across all industries and a leading network of partners and stakeholders,” HCL Tech said in a release.

Apparao VV, the company’s Chief Human Resources Officer said, “The $10B revenue milestone is a testament of our remarkable resilience as an organization and the entrepreneurial spirit of our 159,000+ employees. With this gesture, we want to sincerely express our gratitude to our employees and their families for all their support.”

The bonus will amount to $90 million plus payroll taxes in some countries, the company said. This is excluded from the FY21 guidance provided by the company last month.

At the end of the December 2020 quarter, HCL had 1,59,682 employees with net addition of 6,597 people during the quarter, and attrition for IT services (for the last year) was at 10.2%.

Last month, for the quarter ending December 2020, HCL had posted a 31.1% increase in net profit, and its revenue was up by 6.4%. Sequentially, net profit was up 26.7% higher from Rs 3,142 crore.  

In the third quarter, HCL Technologies recorded revenue growth at 3.5% quarter-on-quarter in constant currency — higher than its estimate of 1.5-2.5% sequential rise.

HCL Technologies had revised its sequential revenue growth guidance to 2-3% for the fourth quarter. Previously, the company had given guidance of an average of 1.5-2.5% increase quarter-on-quarter for the third and fourth quarter.