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IT bellwether Tata Consultancy Services (TCS) on Monday said that salary expectations of IT professionals is moderating. The Tata group company also expects the attrition to moderate during the second half of the current fiscal. “We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate,” Milind Lakkad, Chief HR Officer, said today.
While announcing its September quarter results, TCS announced that its workforce stood at 6.16 lakh- a net addition of 9,840 during the quarter. However, its attrition rate also soared to 21.5% in the last 12 months.
“With normalizing wage expectations and talent supply catching up across the industry, the company expects attrition to start to taper down in H2,” TCS said in a statement.
India’s top IT exporter reported a 8.4% rise in second-quarter profit today on the back of strong deal wins. The company’s net profit rose to ₹10,431 crore in the three months ended 30 September. Analysts on average had expected a profit of ₹10,244 crore, according to Refinitiv data.
TCS’s revenue from operations rose 18% to ₹55,309 crore during the July-September period from ₹46,867 crore year-on-year (YoY), and up 4% from ₹52,758 crore quarter-on-quarter.
Its operating margin for the second quarter came in at 24%.
Samir Seksaria, Chief Financial Officer, said: “We are steadily making our way towards achieving our operating margin priority for the year, aided by leverage from good growth, the flattening of the workforce pyramid, steadily improving productivity and currency support. Very importantly, the headwinds from the supply-side challenges are abating, so that sets us up well for the seasonally weak second half of the year.”
TCS shares closed nearly 2% higher at ₹3,121 apiece on the BSE ahead of its Q2 results.
Market participants are keenly watching TCS for signals on the demand outlook for the sector, which is staring at the possibility of a recession in the U.S. and Europe from where they draw a bulk of their revenue.
“Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements,” Chief Executive Rajesh Gopinathan said in a statement.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
