30% TCS Employees Will Get Incentives Based On Team’s Performance; 70% Will Get Full Variable Pay

TCS is to give 70% of employees full variable pay for Q2FY23.

The quarter ended September with profitability crossing the Rs 10,000-crore mark, backed by consistent demand in services will probably make it happen.

Profit

The IT services company clocked consolidated bottomline at Rs 10,431 crore for the September FY23 quarter

This is a 10 percent growth over previous quarter (up 8.4 percent YoY), with profitable growth across verticals as per the average of estimates of analysts.

Revenue

The consolidated revenue in rupee terms grew by 4.8 percent sequentially (up 18 percent YoY) to Rs 55,309 crore by the company.

This is higher than the CNBC-TV18 poll which estimated that it at will Rs 54,905 crore for the said quarter, driven by strong execution.

Orderbook

The order book remained strong for yet another quarter at $8.1 billion for Q2FY23, though slightly down compared to $8.2 billion in the previous quarter.

“Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements,” Rajesh Gopinathan said.

Growth Across Verticals

The Tata Group firm said the growth was broad-based across verticals, led by Retail & PCG that grew by 22.9 percent YoY in constant currency terms, and communications & media with 18.7 percent growth.

Attrition

IT service’s attrition was 21.5 percent on the last twelve months’ basis, which came in higher than 19.7 percent recorded in June FY23 quarter.

With normalizing wage expectations and talent supply catching up across the industry, the company expects attrition to start to taper down in the second half of FY23.

“We believe the 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.