TCS has loaded up half a million peeps as it expects many to move on
- The IT services giant reported 3.9% quarterly increase in revenue in April-June.
- TCS has declared a dividend of ₹7 a share.
- The company gave jobs to 20,409 fresh talent, which is the highest ever quarterly addition.
AdvertisementThe information technology (IT) services behemoth Tata Consultancy Services (TCS) has onboarded 20,409 fresh talent in April-June, the highest every quarterly addition. With this, its workforce crossed the 500,000 mark this quarter. To put it in perspective, India’s largest employer Indian Railways’ employee count is 1.25 million.
The company posted a revenue growth of 3.9% to ₹45,000 crore in June quarter, slightly lower than some analysts’ estimates. The company’s profit for the quarter stood at ₹9,031 crore, marginally lower than the previous quarter’s profit of ₹9,282 crore.
"Our attrition rate 8% is in a way artificial because of... primarily because of pandemic, and that number normally what we are at is about 11-12% is normally which we operate at and even if you look at the past quarters ... in high demand situations actually we go even up to 13-14%. so i think the point is you know that the attrition is definitely going to... going up and there is a (sic) uptick we are seeing there, but it is very much part of our operating model..." said Milind Lakkad, Global Head of Human Resources.
This is not a unique problem to TCS as even Wipro has been prepping up for a similar situation as there is a huge boom in tech services, but not enough talent to meet the demand.
Further, net income of the company showed good upside trajectory as it grew 28.5% year on year to ₹9,008 crore for the quarter ended June.
Moreover, the order book of the company strengthened by 17.3% year on year to $8.1 billion.
|Revenue||₹45,000 crore||3.9% up from previous quarter, 18.5% on year|
|Net income||₹9,008 crore||28.5% on year growth|
|Order book||₹60,563 crore||17% growth on year|
|New hires||20,409||Highest quarterly net head count|
Besides, all verticals have shown good sequential growth with life science and healthcare showing over 7% growth on quarter.
|Vertical||Growth quarter on quarter|
|Life sciences and healthcare||7.30%|
|Technology and services||5%|
|Communication and media||1.70%|
The growth was led by North America (4.1%), UK (3.6%), Continental Europe (1.5%), Latin America (4%) and Middle East & Africa (4.2%) The pandemic’s second wave impacted sequential growth in India (-14.1%) and Asia Pacific (2.4%).
The second wave of COVID-19 pandemic hit TCS hard in its India business. While the growth is still strong, it may not be as good as what the market had expected, according to analysts at Emkay Global who cut the revenue growth estimate for the company for the next two financial years. This could weigh the stock down too, they added.
SEE ALSO: Live teaching platform Teachmint app raises fresh funding of $20 million (businessinsider.in)
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