TCS Added 523 Employees In Q1FY24, Attrition Rate Dip To 17.8%

The IT behemoth Tata Consultancy Services (TCS) released its April-June quarter results today, indicating a drop in its attrition rate to 17.8% from Q4FY23 when it was 20.9%. In Q1FY23, TCS' attrition reached a high of 28.4%. Then, in Q2FY23, it dropped to 27.1%. According to the report, TCS had a total employee number of 6,15,318 as of June 30, 2023 and made a net addition of 523 employees during Q1FY24.

"The workforce continues to be very diverse, comprising 154 nationalities and with women making up 35.8% of the base. The company rolled out its annual salary increase across its workforce, with effect from April 1, 2023. Its investment in upskilling its workforce continues apace. Year till date, 103,000 employees were trained in high demand competencies and collectively, TCSers clocked 12.7 million learning hours, and acquired 1.3 million competencies," said TCS in a stock exchange filing on Wednesday.

"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% of the workforce already in office thrice a week. We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle.

TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market relevant skills like generative AI, cloud, data and analytics. 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. While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year," said Milind Lakkad, Chief HR Officer.

TCS announced on Wednesday that its net profit after tax (PAT), which was Rs 9, 478 Cr in Q1FY23, jumped by 16.84% YoY to Rs 11,074 Cr in Q1FY24. The IT behemoth reported that its revenue from operations grew by 12.5% YoY to Rs 59,381 Cr in the June 2023 quarter from Rs 59,162 Cr in the corresponding quarter of FY23. In full FY23 its consolidated revenue from operations was Rs 2,25,458 Cr while its net profit was Rs 42,147 Cr in 12MFY23.

"Dividend Fest has started in D-Street for Q1. In this series, India's biggest IT services provider and large-cap company "Tata Consultancy Services (TCS)" has announced its interim dividend of Rs. 9 per share. Not only this TCS has reported a rise in its consolidated profits at 16.80% which is (INR) Cr. 11,074 for Q1 of the current financial year. Worth noting here TCS has outperformed many peers but trading below its "all-time high".

Many IT stocks are still under pressure amid weaker global cues, a rise in the dollar and a dip in sales. In fact, TCS has recorded almost a 3% plunge in their net revenue for the last quarter (Dec). Its total tenure from operations rose by 12.50% from June 22 to June 2023. Last year it was 52,758 crores and now on June 23, it is 59381. So, overall all results are as expected in fact it has beaten the sluggishness in the IT industry and set a benchmark for this dividend payout in the coming weeks", says V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

On Wednesday, the shares of TCS closed on the NSE at Rs 3,260.95 apiece down by 0.35% from the previous close of Rs 3,272.40.

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