Tata Consultancy Services (TCS) said on Friday said that it had crossed the 600,000 milestone with a total headcount of 606,331 at the end of first quarter of financial year 2023. India’s largest Information Technology (IT) services firm had added a total of 14,136 new employees during the quarter.
TCS’ employee count touched 500,000-mark at the end of first quarter of FY22. With a total number of 20,409 employees, the IT behemoth had registered highest-ever quarterly net headcount in the April-June quarter last year.
“Our investment in strategic talent development initiatives and the linking of learning to career development have energized our workforce. Following our annual compensation review, employees received salary increases of 5 to 8 per cent, with top performers getting even bigger hikes,” said Milind Lakkad, chief HR officer.
“Our empowering, performance-driven work culture is helping us attract local talent across all our key markets. Continued hiring momentum resulted in a milestone quarter, with the employee strength crossing the 600,000-mark,” he added.
“The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.5 per cent of the base,” TCS said in BSE filing.
In Q1FY23, the attrition rate rose to 19.7 per cent on a last twelve-month basis. It was the highest attrition rate registered by the the Bengaluru-based IT giant in the last six quarters. The attrition rate came in at 17.4 per cent in the quarter-ending March 2022.
Attrition in this quarter should be also considered from a seasonality perspective, said TCS CEO Rajesh Gopinathan while commenting on the attrition rate during the press conference.
“On an absolute basis, it is continuing to increase, though on a percentage basis, it is starting to flatten and we expect that that may continue into part of Q2 also. It will be H2 when we will start seeing some amount of more meaningful moderation of it. That’s our immediate short-term view on attrition but from a medium long term, we think that both the supply side as well as the demand side is easing up – in terms of talent coming from outside of the immediate industry system and that should play into moderation,” he said.
The company earlier said it expects the rate of staff departure to decrease and demand for its services in the coming month.
TCS Q1 Results
TCS reported a 5.2 per cent year-on-year jump in consolidated net profit to Rs 9,478 crore for the quarter ended on June 30, 2022. The IT giant reported Rs 9,008 crore net profit for the same quarter last year. Revenue for the quarter climbed 16.2 per cent year-on-year to Rs 52,758 crore in Q1FY23. The company reported a revenue of Rs 45,411 in the year-ago quarter. TCS’ EBIT margin stood at 23.1 per cent in the June quarter compared with 25 per cent in the March quarter.
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