DBT Bureau
Bengaluru, 30 April
Indian IT services firm Wipro on Monday said its new CEO and MD, Srinivas Pallia will receive a compensation up to $7 million per annum for the first two years. In an exchange filing, the company said this salary will include a cash compensation that may range between $1.75 million & $ 3 million.
The actual payment to the new CEO, however, will be linked to a number of parameters that include performance of the company, share price and others during this period. Meanwhile, the company said its former CEO, Thierry Delaporte will be paid $4.33 million after appropriate deductions. The company also said that Delaporte, who resigned from the company recently, had sold all his stocks worth $21.4 crore (around $2.7 million) this month (April 2024).
2- Birlasoft posts sound Q4 performance
Birlasoft posted sound Q4 earnings in the fourth quarter ended March, indicating gradual improvement in its performance. In dollar terms, revenue of the company stood at $163.9 million, an increase of 1.6% over the previous quarter. It was up 1.6% in constant currency terms. For the full fiscal year, revenue of the company was at $637.2 million, an increase of 6.7% in constant currency terms. Operating margin increased by 33 basis points to end at 14.7% in the final quarter of FY24.
“While our near-term outlook is likely to reflect the impact of shifts in customer priorities that affect both transformational and discretionary spending, we continue to invest in our capabilities such as Generative AI where we have been early adopters,” Angan Guha, CEO and MD, Birlasoft.
3- IT stocks fall sharply from 52-week high
Amid a tepid demand outlook, share prices of Indian IT companies have fallen sharply in recent months. Among large IT firms, Tata Consultancy Services (TCS)’ stock prices have fallen by 9.3%, while Infosys stock has fallen 17.4%. Similarly, the share price of HCL Tech fell by around 18% from its 52-week high.
Among small and mid-tier firms, Tanla Platforms share has fallen by 30% so far, while LTIMindtree’s shares are trading at 26% lower than its 52-week high. Among engineering services companies, Cyient has fallen by 25%, while Persistent Systems is down 24% from its 52-week high. The Nifty IT index has fallen by around 8% in the last three months owing to concerns over the growth prospects of IT firms.
