TCS Announces Employee Salary Hikes Alongside Strong Fourth Quarter Results
The company’s net profit rose by 9% in the last quarter, reflecting strong performance and increased sales margins. Additionally, TCS received record new orders worth $13.2 billion.
Tata Consultancy Services (TCS) makes headlines with a dual announcement, revealing its fourth-quarter financial results alongside salary hikes for its employees. TCS HR Head, Milind Lakkad, disclosed that high-performing employees would receive double-digit increments, continuing the company's tradition. Earlier in the financial year, TCS had already implemented a 12 to 15 percent salary increase and promotions for deserving staff.
TCS records a decrease in attrition rates to 12.5 percent in the March quarter, down from 13.3 percent, marking the first decline in its workforce numbers in 19 years, since its listing in 2004.
In terms of financial performance, TCS reported a 9 percent rise in net profit to Rs 12,434 crore for the January-March quarter of the financial year 2023-24. This growth was attributed to improved margins and robust Indian business performance. The company's net profit for the entire financial year surged by 9 percent to Rs 45,908 crore.
Furthermore, TCS achieved a sales margin increase of 1.5 percent to 26 percent in the quarter under review, with revenue climbing by 3.5 percent to Rs 61,237 crore. Notably, the company secured new orders worth $13.2 billion during this period, marking a historic high.
CEO and MD of TCS, K Keerthivasan, highlighted the company's commitment to supporting customers amidst a challenging global landscape. Revenue from Indian business, including substantial contracts such as those with BSNL worth over Rs 15,000 crore, witnessed a remarkable 38 percent growth.
Following the positive financial results and record-breaking order intake, TCS shares saw an upward trend in the stock market, closing at Rs 4000, up approximately Rs 18. Market experts anticipate further growth in TCS stock, considering its strong performance. The stock's 52-week high stands at Rs 4,254.45, with a low of Rs 3,070.30.
