BackTCS attrition rate spikes to 21.5%, adds 9,840 new employees in Q2FY23
While announcing its results for the second quarter of FY23, TCS' workforce stood at 616,171, a net addition of 9,840 employees during the quarter
PremiumIT services firm Tata Consultancy Services (TCS) saw attrition for the September quarter (Q2FY23) come in at 21.5%. While announcing its results for the second quarter of FY23, TCS' workforce stood at 616,171, a net addition of 9,840 employees during the quarter.
In the June quarter, TCS had said that the rate of attrition was at 19.7% while in the March quarter, TCS' attrition rate was at 17.4%.
India's top IT exporter also said that it expected attrition to "taper down from this point, while compensation expectations of experienced professionals moderate."
On the attrition rate, Milind Lakkad, Chief HR Officer, said, "We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate."
“Reflecting our culture of being committed to our employees, we have honored all the job offers we had made. Our investments in capacity building and organic talent development have allowed us to substantially grow our business ahead of headcount addition this quarter," Lakkad added.
TCS Q2 profit tops view
The company reported a 8.4% rise in second-quarter profit on the back of strong deal wins. The country's top IT exporter's net profit rose to ₹10,431 crore in the three months ended 30 September.
Analysts on average had expected a profit of ₹10,244 crore, according to Refinitiv data.
TCS's revenue from operations rose 18% to ₹55,309 crore during the July-September period from ₹46,867 crore year-on-year (YoY), and up 4% from ₹52,758 crore quarter-on-quarter.
Its operating margin for the second quarter stood at 24%, contraction of 1.6% YoY, whereas its net margin stood at 18.9%.
TCS is the first among its peers to report quarterly earnings, setting the tone for the industry, which has been benefitting from a pandemic-led boom in demand.
Market participants are keenly watching TCS for signals on the demand outlook for the sector, which is staring at the possibility of a recession in the U.S. and Europe from where they draw a bulk of their revenue.
"Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements," Chief Executive Rajesh Gopinathan said in a statement.
TCS and rivals Infosys, Wipro and HCL Technologies have been winning large contracts after the pandemic-led work-from-home phenomenon fired up demand for new technologies.
The Mumbai-based firm's order book for July-September stood at $8.1 bln.
TCS shares closed nearly 2% higher at ₹3,121 apiece on the BSE ahead of its second quarter results.
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