TCS now has over five lakh employees

The IT services giant reported a profit of Rs 9,008 crore in the first quarter of FY22.
Tata Consultancy Services
Tata Consultancy Services
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Tata Consultancy Services now has over 5 lakh employees, the company announced on Thursday, July 8, while announcing the results for the first quarter of FY22. The IT services giant reported a profit of Rs 9,008 crore in the first quarter of FY22, up 28.5% year-on-year. This is also because its profit in Q1FY21 had fallen to Rs 7,008 crore when business was disrupted due to the lockdown in the quarter last year. This is also slightly below analyst expectations. 

Consolidated revenue from operations increased by 18.5% year-on-year (3.9% sequentially) to Rs 45,411 crore compared to Rs 38,322 crore in the corresponding quarter of 2020-21. In terms of the company’s discretionary spends, which fell due to the pandemic, Chief Financial Officer Samir Seksaria said that discretionary spends are seeing an uptick, and are expected to return to pre-pandemic levels by end of FY22.

Its workforce was up 17.3% year-on-year, and its headcount came in at 5,09,058. TCS said this was its highest-ever quarterly net headcount addition of 20,409. Women make up 36.2% of the workforce. Attrition for the quarter came in at 8.6%. Attrition, CEO Rajesh Gopinathan said, was picking up in response to the overall demand environment. 

In response to a question, Chief HR Officer Milind Lakkad said that the attrition at 8.6% is artificial in a way, as the company generally operates at 11-12%. He added that in high demand environments it has gone up to 13-14%, and it is part of the company’s operating model.

The company had earlier said that it would be hiring 40,000 freshers, primarily in the first and second quarter of FY22. The CEO said the company hired nearly 38,500 people during the quarter.

In terms of vaccination numbers, TCS said that over five lakh associates and their family members have been vaccinated, and that 70% of their associates are vaccinated. In a statement, Chief HR Officer Milind said that they aim to vaccinate all employees and families by September. “We continued to place a premium on associate health and wellbeing and have taken vaccination as a priority for all our associates, dependents and contract staff,” Lakkad said. 

“The TCS family crossed a new milestone, with over 5,00,000 associates this quarter. We continue to attract the best talent across the globe with a net addition of 20,409 associates to the TCS family this quarter,” he said. 

Talking about the company’s ‘25 by 25 model’ (75% of employees at any point working from home by 2025, and only 25% in office), Chief Operating Officer (COO) NG Subramanian said, “In order to strategise that, as things open up and become safer, we do believe that a certain amount of return to work will happen and the hybrid model, as the world calls, it will probably stay for a longer time.”  

He added that the company’s SBWS (secure borderless workspaces) model will lay the foundation for a hybrid model of the future. 

In a statement, CEO and MD Rajesh Gopinathan said the company’s business in North America, BFSI and Retail showed appreciable growth. “Given the variants of the virus and fears of a potential third wave, we are watchful of the emerging situation and remain optimistic of the opportunities in our core markets and verticals. We are well positioned and operating diligently to participate in them aggressively,” he said. 

COO NG Subramaniam said, “We overcame the challenges posed by the second wave of COVID-19 in India, taking some practical approaches. I am satisfied that the delivery of all our client engagements was kept on track. We once again had a superior quarter with a TCV [total contract value] of $8.1 billion, which is broad based across markets and verticals.”

CFO Samir Seksaria said that the company crossed the $6 billion milestone in quarterly revenue despite salary increases, promotions and the vaccination drive. 

In terms of industries, TCS said that Life Sciences and Healthcare led growth, up by 7.3% sequentially and 25.4% year-on-year. 

“Retail and CPG also bounced back to double digit growth, growing 4.4% QoQ and 21.7% YoY. BFSI (+3.1% QoQ, +19.3% YoY), Manufacturing (+4.8% QoQ, +18.3% YoY), Technology & Services (+5% QoQ, +12.3% YoY) and Communications & Media (+1.7% QoQ, +6.9% YoY) also saw significantly improved performance,” TCS said in a statement. 

In terms of growth in markets, the pandemic’s second wave led to a degrowth of 14.1% sequentially due to the second wave of the pandemic.

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