Tata Consultancy Services (TCS), India’s largest IT services company, has kicked off the fiscal year 2024-25 on a positive note by completing its annual salary increments in the first quarter.
IT giant rolled out a 4-5 percent increment, along with double-digit hikes for top performers as announced by the company during the Q4 earnings conference in April. TCS typically awards exceptional performers annual increments of 12-15 percent to encourage high performance.
Milind Lakkad, Chief HR Officer, TCS expressed delight in completing TCS’s annual increment process, attributing industry-leading retention and robust business performance to their focus on employee engagement and development. He emphasized immense satisfaction with the net headcount addition as well.
Key Highlights Q1 FY25
- Profit Surge: TCS reported a robust net profit of ₹12,040 crore for Q1 FY25, representing a 9% year-on-year increase. This financial performance underscores the company’s resilience and adaptability in a dynamic market.
- Revenue Growth: The company’s revenue for the quarter stood at ₹62,613 crore, marking a 5.4% year-on-year growth. Despite the pandemic’s impact, TCS continues to demonstrate steady progress.
- Margin Expansion: TCS managed to maintain healthy operating margins despite the annual salary hike. The operating margin stood at 23.2%, reflecting the company’s efficiency improvements and strategic cost management.
- Workforce Strength: TCS added 5452 new employees during Q1, taking its total workforce to 615,318. The company’s commitment to diversity is evident, with women constituting 35.8% of its workforce, representing 154 nationalities.
- Learning and Development: TCS remains invested in upskilling its employees. During the quarter, the workforce clocked 12.7 million learning hours, acquiring 1.3 million competencies. The focus on continuous learning ensures that TCS employees stay at the forefront of technology.
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TCS Annual Salary Increments: Quotes from TCS Leadership
- K Krithivasan, CEO and Managing Director: “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.”
- N Ganapathy Subramaniam, COO and Executive Director: “Our products and platforms achieved major milestones during the quarter with several transformational engagements going live. We are proactively building differentiating capabilities in generative AI and actively working on such projects with our clients.”
- Samir Seksaria, CFO: “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.”
- Milind Lakkad, Chief HR Officer: “We remain focused on developing, retaining, and rewarding the best talent in the industry. Our Return to Office initiative is picking pace, with 53% of the workforce already in the office thrice a week.”
Conclusion
TCS completed salary increments in Q1, boosting morale and retaining talent amid competitive pressures, reflecting its commitment to employee satisfaction and retention in the industry.
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