TCS Q2 results: Employee headcount falls by 6,333, firm says ‘recalibrating gross additions’

TCS Q2 results: ‘Our strategy of proactively hiring bright freshers and investing in training them with the right skills is paying off,’ says CHRO Milind Lakkad

SUMMARY

• The headcount fell by 6,333 people compared to the previous quarter.
• CHRO Milind Lakkad noted that the company has ‘recalibrated’ its gross additions.
• The IT services major reported a rise of 8.7 per cent in its consolidated net profit

Indian IT services company Tata Consultancy Services (TCS) announced its Q2FY24 results on Wednesday and reported a drop of over six thousand employees in its total headcount as compared to the previous quarter.

Hiring drop

TCS’s net employee headcount was at 608,985 as of September 30. The company’s employee headcount was at 615,318 in the June quarter. The headcount fell by 6,333 people compared to the previous quarter.

The company witnessed a drop in headcount on a yearly basis as well. The company’s headcount in Q2FY23 was at 616,171. The headcount in Q2FY24 was down by 7,186 employees.

CHRO Milind Lakkad noted that the company has ‘recalibrated’ its gross additions.

He explained, “Our strategy of proactively hiring bright freshers and investing in training them with the right skills is paying off. With that talent coming on stream and with reduced attrition, we were able to recalibrate our gross additions, keeping it below the departures during the quarter, driving up productivity and enhancing project outcomes.”

Attrition

The attrition at the IT major also improved significantly compared to previous quarters. The LTM IT Services attrition rate for Q2FY24 was at 14.9 per cent. The attrition in Q2FY23 was around 21.5 per cent, a difference of 6.6 percentage points. Attrition improved nearly 3 percentage points on a quarterly basis. The attrition in Q1FY24 was at 17.8 per cent.

The IT services major reported a rise of 8.7 per cent in its consolidated net profit, which came in at Rs 11,342 crore for the September quarter. The company’s board approved a buyback of Rs17,000 crore at a price of Rs 4,150 per equity share, a premium of about 15 per cent.

Interestingly, this is the company’s fifth share buyback in a span of six years.

With Thanks Reference to: https://www.businesstoday.in/latest/corporate/story/tcs-q2-results-employee-headcount-falls-by-6333-firm-says-recalibrating-gross-additions-401642-2023-10-12