TCS announces second quarter results: Attrition up, but why the company is not ‘worried’ – Times of India
India’s largest IT company Tata Consultancy Services (TCS) has announced the second quarter results for the fiscal year 2023. The IT services major reported record profit for the July-September quarter. The company witnessed 8.4% rise in second-quarter profit on the back of strong deal wins.
TCS posted a net profit of Rs 10,431 crore as against Rs 9,624 crore during the same quarter last year. The Tata Group company said that its total revenue from services grew at a much faster pace of 18% to touch Rs 54,309 crore in the period under review. The IT major had reported consolidated revenue of Rs 46,867 crore in the year-ago quarter from which it had earned Rs 9,624 crore net income. However, its operating margin narrowed by 1.60 percentage points to 24%.
TCS’ results also had some ‘good news’ for other IT companies which had been battling a rise in attrition in the sector. While the employee attrition rate went slightly up during the quarter compared to the previous, the company does see it coming down. “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,” chief HR officer Milind Lakkad said as per the company’s release. However, while the management did indicate that the attrition rate would come down, it did not offer any quantitative guidance.The attrition rate at TCS touched 21.5% in the July-September quarter, up from 19.7% in April-June. The employee additions during the quarter too slowed down considerably. In Q2, TCS added 9,840 employees, which is the lowest in many quarters.
TCS posted a net profit of Rs 10,431 crore as against Rs 9,624 crore during the same quarter last year. The Tata Group company said that its total revenue from services grew at a much faster pace of 18% to touch Rs 54,309 crore in the period under review. The IT major had reported consolidated revenue of Rs 46,867 crore in the year-ago quarter from which it had earned Rs 9,624 crore net income. However, its operating margin narrowed by 1.60 percentage points to 24%.
TCS’ results also had some ‘good news’ for other IT companies which had been battling a rise in attrition in the sector. While the employee attrition rate went slightly up during the quarter compared to the previous, the company does see it coming down. “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,” chief HR officer Milind Lakkad said as per the company’s release. However, while the management did indicate that the attrition rate would come down, it did not offer any quantitative guidance.The attrition rate at TCS touched 21.5% in the July-September quarter, up from 19.7% in April-June. The employee additions during the quarter too slowed down considerably. In Q2, TCS added 9,840 employees, which is the lowest in many quarters.
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