After the end of the first quarter of the financial year 2023-2024, the Tata Group’s consultancy arm – Tata Consultancy Services – reported a big profit, even as TCS announced a pay hike for employees after the company’s revenue rose 13 percent.
After a successful first quarter of the financial year, IT consulting firm TCS reported a nearly 17% year-on-year (YoY) rise in consolidated net profit for the June quarter at Rs 11,074 crore. Not only a huge increase, but because of the company’s success they also promised a raise for their employees.
Apart from TCS’s net profit, the company’s consolidated revenue currently stands at Rs 59,381 crore for Q1. While net profit was above estimates, net revenue for the quarter was marginally lower than reported estimates, pegged at Rs 59,500 crore.
Milind Lakkad, Chief HR Officer, Tata Consultancy Services, said the company has increased the salaries of its employees in connection with the company’s profitability this quarter. “We gave a 12-15% increase in exceptional performers in our recent annual compensation review, and also started the promotion cycle,” TCS said in a statement.
As quoted by Business Today, Lakkad said, “TCSers logged 12.7 million learning hours to improve themselves in market-relevant skills such as generative AI, cloud, data and analytics during the quarter. Our attrition continues to decline and we expect it to return to our industry-leading, long-term range in the second half of the year.”
Following a hybrid model of work after the Covid pandemic died down, 55 percent of all TCS employees are working from the office three times a week, a model that has been beneficial in reducing maintenance costs for large companies.
TCS is one of the most profitable companies in the Tata group and currently has a market cap of around Rs 12 lakh crore
