On July 12, TCS and HCLTech will announce their results for the First Quarter of FY 2024, which ended June 30. Wipro will announce its first quarter results for FY2024 on July 13, 2023.
However, according to an exchange filing by the company, Infosys will announce its Q1Fy24 results on July 20.
Some other companies, this week including Bhansali Engineering, Federal Bank, Sterling Wilson, and Tata Metaliks will also declare their first quarter results for the financial year 2023-24.
According to reports, Tech Mahindra and TCS may experience a significant decline in margins due to wage hikes. It is expected that IT companies will focus on saving costs due to a weakening revenue outlook and reduced employee turnover. However, for other companies, margins are anticipated to remain relatively flat.
TCS
The attrition for every quarter has seen a deep fall to 20.1 percent, continuing its downward trend from last quarter’s. TCS has reported attrition in Q3FY23 stood at 21.3 percent, a slight decline from 21.5 percent in Q2FY23 on a last-twelve-month basis.
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.
HCLTech
The total workforce as on 31 March 2023 stood at 225,944. The company onboarded over 4,480 freshers in the March quarter.
As per the earlier quarter, The current attrition rate stood at was at 19.5%. The LTM Attrition in the previous quarter was 21.7% which was slightly lower as compared to the September quarter of the fiscal year where it was at 23.8 percent.
Wipro
Wipro saw a reduction in employee count from January to March 2023. The firm’s total headcount at the end of the March quarter slipped to 256,921 from 258,744 in the last quarter. Wipro has reduced its headcount by 1,823.
The firm’s total headcount at the end of the December quarter slipped to 258,744 from 259,179 in the last quarter. As of September 30, 2022, Wipro added 605 new employees.
In its fourth quarter voluntary attrition rate decreased to 14.1 percent.
Infosys
Infosys attrition rate during the fourth quarter dropped to 20.9 percent, as compared to 24.3 percent in Q3 FY23. The attrition rate in the September 2022 quarter was 27.1%. The percentage of Women Employees’ contributions as of March 31 is 39.4 percent.
The total employee count as of March 31 stood at 3,43,234, marking a drop of 3,611 employees as compared to the previous quarter. Infosys’ total employee count stood at 3,46,845 in Q3FY23.
IT firms to cut payouts as outlook weakens
It is expected that the weak demand resulting from recession fears in the US and the recent wage hikes are expected to pressure the first-quarter earnings of Indian information technology companies.
The IT industry is likely to offer muted variable payouts of 60-70% of the promised amount for the June quarter, with top performers getting as much as 80%.
As per reports, it is estimated that the IT firms will keep their variable pay between 60-80% in the three months to 30 June. Previously, TCS offered full variable pay, while Wipro and Infosys offered 80.25% and 60%, respectively.