Shares of Tata Consultancy Services (TCS) continued to be under pressure as the industry faced margin headwinds amid a split among brokers. At the same time, the street remained cautious on shares of the IT bellwether. TCS’ first-quarter profit margin was at a 14-year low.

Global brokerage Macquarie has an outperform rating on TCS shares, while JPMorgan Chase has an underweight stance.

Macquarie sees slight declines in revenue and margin estimates. However, JPMorgan believes that margin pressure on IT companies could lead to lower earnings.

Shares of TCS, India’s largest software exporter, were at Rs 3,260 at 12.26 pm, down 0.7% from their previous close on the BSE. Over the past five sessions, the stock has corrected 3% on widespread industry concerns about employee variable compensation.

Following reports that TCS delayed paying variable pay, the company said it will pay 100% of variable pay in the first quarter without any delays.

Variable pay is performance-based and is typically a fraction of company cost (CTC).

“We encountered completely incorrect pay reporting. Variable pay is paid in the first or second month following the normal process with no delays. 100% of variable pay is paid in the first quarter,” TCS said in a statement.

At the same time, Infosys shrunk its average employee variable expenses to around 70% in the June quarter due to low-profit margins and high staff costs. On the other hand, Wipro has suppressed variable pay, mainly due to margin pressures, talent supply chain inefficiencies and technology investments.

These actions come as IT companies struggle to protect their profits, which are being squeezed by rising staff costs and high turnover rates.