TCS Q1 results: 'We have given 12%-15% pay hike to exceptional performers,' says CHRO

Milind Lakkad, Chief HR Officer, Tata Consultancy Services, said the IT major has given hikes and also commenced the promotions cycle. 

"We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle," said TCS in its Q1 earnings statement. 

Lakkad said 55% of the company's employees have been working from office thrice a week. 

“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," he said.

"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," added Lakkad. 

He said the IT major is "committed to honor all the offers we have made" but its "focus will be on leveraging the capacity we built last year". 

Samir Seksaria, Chief Financial Officer, TCS said the company has rolled out its annual salary increase with effect from April 1.

“We have gone ahead and rolled out our annual salary increase with effect from April 1st. Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies. At the same time, we continue to make the investments needed to power our future growth, including expansion of our delivery and research infrastructure.”

As of June 30, 2023, the company's workforce strenght stands at 6,15,318, including net headcount addition of 528 in June quarter. 

TCS reported a 16.8% rise in net profit in June quarter helped by large order wins.

Consolidated net profit rose to Rs 11,074 crore in the first quarter that ended on June 30, from Rs 9,478 crore in the year-ago period.

Revenue from operations rose 12.6% to Rs 59,381 crore. TCS said its order book for the April-June period stood at $10.2 billion against $8.2 billion a year ago.

The company announced interim dividend of Rs 9 per share. 

K Krithivasan, Chief Executive Officer and Managing Director, said: “It is very satisfying to start the new fiscal year with a string of marquee deal wins. We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies. We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximize our participation in these opportunities.”