India’s largest IT services firm, Tata Consultancy Services (TCS) reported its consolidated financial results for Q1FY24 the quarter ending June 30, 2023. The IT giant reported a 16.84 per cent year-on-year (YoY) rise in its consolidated net profit. But on a quarter-on-quarter (QoQ) basis, TCS’ consolidated net profit was down 2.8 per cent.
K Krithivasan, Chief Executive Officer and Managing Director said, “It is very satisfying to start the new fiscal year with a string of marquee deal wins.”
“We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies. We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximize our participation in these opportunities”, K Krithivasan added.
Milind Lakkad, Chief HR Officer, said, “We remain focused on developing, retaining, and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to office to foster our culture. Our Return to Office initiative is picking pace, with 55% of the workforce already in office thrice a week.”
“We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle”, Milind Lakkad added.
“TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market-relevant skills like generative AI, cloud, data, and analytics. Our attrition continues to trend down and we expect it to be back in our industry-leading, long-term range in the second half of the year. While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year”, Milind Lakkad further added.
Samir Seksaria, Chief Financial Officer, said: “We have gone ahead and rolled out our annual salary increase with effect from April 1st. Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies.”
“At the same time, we continue to make the investments needed to power our future growth, including expansion of our delivery and research infrastructure”, Samir Seksaria added.
TCS LTM IT Services attrition rate this quarter is 17.8% with workforce strength of 615,318. The company’s net headcount addition of 523 and contribution of women in the workforce is 35.8%.
The company’s headcount as of March 31, 2023, stood at 6,14,795. In the previous quarter, TCS in Q3FY23 posted a decline of 2,197 people in its employee base, and TCS headcount stood at 613,974 as on December 31, 2022.