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TCS Q1 Results have been released. A net profit of Rs 11,074 crore was declared by the biggest exporter of software services in India. While Infosys chose to postpone the compensation rise for its staff, TCS implemented its annual salary increase, resulting in a 200-bps reduction to its operating margin.
The annual pay raise is now in effect as of 1 April, according to TCS Chief Financial Officer (CFO) Samir Seksaria. The 200-bps impact of this boost is shown in our operating margin of 23.2%, which is compensated by increased efficiency. The company said that they are continuing to expand delivery and research infrastructure while making the investments necessary to fuel future growth. The corporation started the promotions cycle and gave excellent employees a 12–15% rise in the most recent annual compensation review.
TCS believes its attrition will return to its long-term, industry-leading range
Milind Lakkad, Chief HR Officer of TCS, indicated that the company anticipates that by the year's second half, the attrition will have returned to its long-term, industry-leading range. While the company is dedicated to honouring all of the offers, Lakkad said that they would concentrate on utilising the capacity we established last year.
TCS added that its attrition rate for IT services decreased significantly in Q1 and was 17.8% for the previous twelve months during the June quarter.
As of 30 June, TCS had a total workforce of 615,318—a net increase of 523 over the previous three months. According to the company's stock exchange report, the crew still has 154 different countries represented, and women make up 35.8% of the base.
The business continues to make investments in its employees' upskilling. According to the filing, 103,000 TCS employees have received training in highly sought-after skills this year. As a whole, TCS employees have logged 12.7 million learning hours and acquired 1.3 million skills.
TCS announced the salary increase after Infosys reportedly delayed salary increases for its staff. All employees below senior management are informed of the company's salary increase by the end of June. The workforce at Infosys, meanwhile, has yet to hear from anyone this year.
It's important to note that macroeconomic conditions have made things difficult for Indian tech startups. For the first time since 2020, Infosys has postponed a pay rise.
TCS's Q1 financial results 2024
In the first quarter of FY24 (April-June), Tata Consultancy Services (TCS) declared a net profit of Rs 11,074 crore. On a YoY basis, this results in an increase of about 17%. The IT industry leader's consolidated revenue increased by about 13% YoY to Rs 59,381 crore during the quarter under review. The previous quarter's figure was Rs 59,162 crore.