‘Marginal impact on Profits’ for Infosys due to the impact of COVID19. Salary of CEO at $6.15 million

Infosys has recently said that the business has been marginally impacted on profits due to the impact of coronavirus. It was also stated that the cash flows negatively for them, currently. According to the latest reports, the CEO drew a package of $6.15 million for the FY20. This has been mentioned in the regulatory filing by the Infosys

Infosys also said that the profits which are marginally impacted are due to most of their clients are asking for price reductions and discounts. In a 20-F submission to the US securities, Infosys has said that their cash flows are negatively impacted by the prolonged payment term requests from clients and low profitability. This may impact the payment of dividends to their stakeholders.

The company has also said that some of its clients have invoked the ‘Force Majeure’ clause in their contracts which is negatively impacting their business.

Not just Infosys, the corona outbreak has negatively impacted the global economy and all the businesses. Most of the companies, including Infosys has decided not to provide a revenue outlook for FY21 due to the impact of coronavirus

Pre-COVID, Infosys has said that there has been an increase in the number of rejections for visa and visa renewal from the United States and some other countries. Due to this, the company has to face the delay or bear the additional cost due to the uncertainty of whether the employee will join at the right time in the right project. The company also highlights that similar situation happened in Australia and the UK as well where the government will focus on “net migration”

Due to this crisis, the companies are preferring to employ local individuals and this could lead to an increase in the restrictions by the governments. The company also says that these extended restrictions will impact the overall cost and expenses for client delivery due to the additional costs in renewing the visas

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Salaries are cut and increments are canceled by Tech Mahindra. But jobs are safe


One of India’s biggest IT service provider Tech Mahindra has released a statement saying that due to the corona lockdown all the promotions and bonuses are put on hold for now. This is due to the lack of revenue since the start of the lockdown. TechMahindra has reported a huge loss of 29% in revenue.

On the brighter side, Tech Mahindra has confirmed that no employee will be fired for now.

Yesterday, while announcing the financial results of the quarter, Tech Mahindra CEO has confirmed the same by saying they are canceling all the bonuses, hikes, and increments for this quarter. This is applicable to all employees of Tech Mahindra.

For senior and mid-level employees, there were undisclosed salary cuts. But for junior-level employees there were no salary cuts planned, Tech Mahindra CEO has confirmed. The situation for now at Tech Mahindra is that no employee is going to be fired. But in the future, depending on the revenue and number of projects at hand, some employees might be asked to leave the organization.

Tech Mahindra CEO has added that unless there is a situation where a complete line of business will be closed, there won’t be any firing of the employees.

Around 90% of the Tech Mahindra employees are currently working from home. The CEO while announcing the quarter results has described that this is a tough period for the company. The company has reportedly lost 29% of the consolidated profits in this quarter. Currently, there are around 1,25,236 employees working in Tech Mahindra which is 4.3% less than the previous quarter.


Related articles:
Infosys suspends promotions, hikes, and all hiring,
All the major Indian MNC’s have postponed the appraisals, bonuses, promotions due to the current pandemic situation


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