TCS Gets Net Profit of Rs 12,444 Crore, Company Has More than 6 Lakh Workers

Tata Consultancy Services (TCS), one of the big software companies, has seen its net profit increase to around Rs 12,444 crore in the quarter ended December. The company’s margin increased by 0.40 percent to 24.5 percent in the last quarter. TCS’s margin in the second quarter was 24.1 percent. However, margins have declined by about 0.50 per cent on a year-on-year basis.

K Krithivasan, chief executive officer, TCS, said, “We are pleased with the good performance in the third quarter. There has been growth in verticals like banking and financial services.” However, the Communication & Media vertical for the company declined by 10.6 percent on a year-on-year basis. Apart from this, a decline has also been recorded in the healthcare and services vertical. The company has seen a growth of more than 70 percent on a year-on-year basis in the India region. However, in the previous quarter this growth was 95.2 percent.

The total contract value for the company was approximately $10.2 billion. TCS’ workforce has decreased by about 5,270 workers in the third quarter. The attrition rate in the company increased to 13 percent. TCS has approximately 6,07,354 workers. It is included among the major companies providing employment in the private sector in the country.

In the last few months, many big technology companies including Microsoft have laid off a large number of workers. In these companies, hiring has increased in new segments like Artificial Intelligence and Machine Learning. Milind Lakkad, Chief Human Resources Officer, TCS, said, “More than 25,000 associates have been promoted in the company in the last quarter. More than 1,10,000 promotions have taken place this financial year. We are continuously investing in upskilling our workers. Our plans for campus hiring remain intact this year.” The company had imposed restrictions on the work-from-home policy last year. The company had said that those who come to office less than 60 percent in a quarter will not get any variable pay for that quarter. In TCS offices, workers with 60-75 percent attendance will get 50 percent of the variable pay, and those with 75-85 percent attendance will get 75 percent. Only workers with more than 85 percent attendance in the office will get full variable pay for that quarter.