TCS attrition rate declines to 17.8%, 523 employees hired in Q1FY24; 12-15% hike given to top performers

Tata Consultancy Services (TCS), the largest software services exporter in India, announced its April-June quarter results today, reporting a decline in its attrition rate to 17.8 per cent for the last 12 months. The IT major's total workforce stood at 6,15,318 as on June 30, 2023, with a net addition of 523 during the quarter, according to a regulatory filing by TCS to the stock exchanges.

‘’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,'' said Milind Lakkad, Chief HR Officer, TCS.

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TCS has given a 12-15 per cent hike for exceptional performers in its latest annual compensation review and also commenced the promotions cycle. TCS rolled out its annual salary increase across its workforce, with effect from April 1, 2023.

‘'Our operating margin of 23.2 per cent 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," said Samir Seksaria, Chief Financial Officer, TCS.

Year till date, 103,000 employees were trained in high demand competencies and collectively. ‘’TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market relevant skills like generative AI, cloud, data and analytics'' said Lakkad.

As on June 30, 2023, the company has applied for 7,447 patents, including 142 applied during the quarter, and has been granted 3,004 patents including 126 granted during the quarter. TCS' order book reached $10.2 billion in the first quarter of FY24. In constant currency terms, revenue grew by 7 per cent year over year. 

The workforce continues to be very diverse, comprising 154 nationalities and with women making up 35.8 per cent of the base, according to the statement.

“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 per cent of the workforce already in office thrice a week,'' added Lakkad.

TCS reported a 16.84 per cent year-on-year rise in its consolidated net profit (attributable to shareholders of the company) for the fiscal's first quarter ended June (Q1FY24) to ₹11,074 crore. 

The company had reported a profit of ₹9, 478 crore in the year-ago period. Sequentially, the consolidated net profit was down 2.8 per cent. The IT major's consolidated revenue from operations stood at ₹59,381 crores during the quarter ended June from ₹52,758 crore in Q1FY23. Sequentially, up 0.4 per cent from ₹59,162 crore in Q4FY23.

On July 12, shares of TCS settled 0.36 per cent lower at ₹3,260.20 apiece on the BSE.