While declaring the fourth quarter results on 10th April, Tata Consultancy Services or TCS mentioned delays in issuing employee hikes. It reflected poorly on the company and its share prices.
TCS Promotion and Salary Hike Delay
Today, on 14th April, TCS’ CHRO and EVP, Milind Lakkad, reported that the company promoted more than 1 lakh employees in the fiscal year 2025. He also said that TCS will recruit 42,000 trainees for the fiscal year 2026. A similar number of trainees were hired last year, too.
One can become an employee at TCS by writing its national qualifier test that places candidates into three categories- Digital, Prime, and Ninja. The company noted a 40% increase in the Digital category hires last year, 17% higher than the previous year. 13% attrition rates were recorded during the last four quarters. Milind Lakkad stated that the 42,000 hires would bridge the gap created by attrition.
During a quarterly press conference, TCS CFO Samir Seksaria stated that TCS implemented tactical interventions of approximately 100 basis points, through performance-based pay hikes and promotions. Employees were acknowledged and rewarded for their contributions through these measures which were primarily conducted outside the typical yearly review cycle. Some market analysts questioned this decision, arguing that such out-of-cycle staff incentives were unjustified by the existing demand for IT services.
TCS Share Price Today
At 9:55 a.m., TCS’ share price was Rs. 1,463.05, approximately 3% higher than its previous close of Rs. 1,415.60 and notably higher than its opening price of Rs. 1,460.00
TCS Q4 Financials
According to the filings, TCS reported revenue of Rs. 64,479 crore, a 5.3% increase over the previous year. The gain, according to analysts, fell just short of their forecasts. TCS’s net profit decreased 1.7% from Rs 12,224 crore in the prior year’s fourth quarter. During the quarter, the operating margin was 24.2%. In the fourth quarter, the corporation revealed that its Total Contract Value was $12.2 billion, which adds up to $39.4 billion annually.
