TCS Employees Get Pay Raise, Membership Strength Passes 6 Lakh Milestone

Tata Consultancy Services (TCS), India’s largest information technology (IT) services company, added 14,136 employees for the first quarter of the current fiscal year, but its attrition rate has slowed. established at 19.7%.

TCS’s workforce was 606,331 as of June 30, a net addition of 14,136 in the quarter, the company said in a regulatory filing Friday.

Human resources director Milind Lakkad said the IT giant had raised the salaries of its employees by up to 8%. “As a result of our annual compensation review, employees received salary increases of 5-8%, with top performers receiving even larger increases. Our challenging and performance-driven work culture helps us attract local talent in all of our key markets,” said Lakkad.

The official further said continued hiring momentum resulted in a banner quarter, with employee headcount crossing the 600,000 mark.

“The workforce remains highly diverse, comprising 153 nationalities and women representing 35.5% of the base,” noted the IT giant.

TCS gradually accelerated its back-to-office program during the June quarter, with approximately 20% of the workforce now working from the office.

TCS revenue shortfall estimates

TCS announced a 5.2% increase in its profit in the June quarter. The net profit amounts to 9,478 crore in the three months to June 30, from 9,008 crores a year earlier.

The IT giant posted disappointing results after fears of a global recession led to steep cuts in technology spending.

The company’s board of directors declared an interim dividend of approximately 8 per share of capital of about 1 each of the company.

TCS operating revenue for Q1FY23 was 52,758 crore, up more than 16% from 45,411 crore year over year (YoY) and up around 4% quarter over quarter (QoQ).

This kicked off the earnings season as TCS is the first major company to announce its financial results.

TCS and its smaller rival Infosys are grappling with rapidly shrinking IT budgets as businesses around the world assess the potential for a recession.

European companies in particular could decline more than in the United States, given the war in Ukraine and increased inflation in the region.

Europe accounts for approximately one third of TCS revenues. But the company has tried to manage wage inflation while buying new cloud services from US customers, particularly in the financial sector. The company lost more than 10% of its market value in 2022, surpassing Infosys.

In the stock markets, shares of the nation’s largest IT company saw volatility ahead of the earnings announcement. TCS closed 0.7% lower ahead of its quarterly earnings report.

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