TCS Let Go 5,680 Employees In Q3, Attrition Dips; Campus Hiring Process Next Year?

In the Q3 of FY24, Tata Group-backed flagship firm, Tata Consultancy Services (TCS) let go of 5,680 employees, taking its total headcount to 603,305 employees. Meanwhile, the company continued to record a decline in its attrition rate, now at a staggering 13.3% by the end of the December 2023 quarter.

As per the regulatory filing, TCS' workforce stood at 603,305 as of December 31st. The employee base is very diverse, with 35.7% women and with 153 nationalities.

The latest headcount is fewer by 5,680 employees compared to 608,985 as of September 30, 2023. On year-on-year, TCS let go of 10,669 employees as against the headcount of 613,974 employees as of December 2022. In Q3FY23, TCS's headcount declined by 2,197 employees.

Meanwhile, the company's IT services' attrition was at 13.3% for the last twelve months. This is lower compared to the attrition rate of 14.9% in Q2FY24 and 21.3% in Q3FY23.

Year to date, in FY24, TCSers have clocked 39.7 million learning hours and acquired 3.7 million competencies including 515,000 high-demand competencies.

Milind Lakkad, Chief HR Officer, on Thursday, said, "The vibrancy and energy levels in our offices are increasing as more and more of our employees are back in the offices. We expect to be back to our normal operating mode by the end of the current fiscal year."

Lakkad further said, "Parallelly, attrition is trending down and at 13.3%, is now in our range of comfort."

However, Lakkad also said, "We are committed to hiring from college campuses and growing talent organically. We have commenced our campus hiring process for the next year and see tremendous excitement among freshers to join TCS."

Also, N Ganapathy Subramaniam, Chief Operating Officer and Executive Director said, "The quarter saw us make significant progress in many projects of national importance, demonstrating our execution strength. Our products and platforms had a strong quarter with new wins and go-lives. The MCX platform is scaling well and processing record transaction volumes. We are on course with the BSNL 4G/5G network rollout. We are making good progress in upskilling our employees in Generative AI through our AI playground platform."

Tata Consultancy Services (TCS) has declared five days a five-day-a-week hybrid policy.

Read more at: https://www.goodreturns.in/news/wipro-to-implement-compulsory-hybrid-work-policy-asks-employees-to-work-3-days-in-week-1310961.html?story=1

In Q3FY24, TCS garnered a consolidated net profit of Rs 11,058 crore in the quarter ending December 31, 2023. Q3FY24 PAT climbed in single digits of 1.95% year-on-year but declined by 2.5% quarter-on-quarter. Meanwhile, the company's top-line growth was also in single digits.

Consolidated revenue came in at Rs 60,583 crore, registering a growth of 4.04% as against revenue of Rs 58,229 crore recorded in the same quarter a year ago. Also, the latest revenue was up by 1.49% from Rs 59,692 crore in September 2023.

Moreover, the Tata Group-backed flagship company not only announced a third interim dividend of Rs 9 per share for investors for FY24 but also declared a special dividend of Rs 18 per share.

On BSE, TCS share price ended at Rs 3736.20 apiece, up by 0.61%. TCS shares will react to Q3 numbers on Friday.

As on December 31, 2023, the company has applied for 7,852 patents, including 187 applied during the quarter, and has been granted 3,458 patents including 305 granted in Q3.