India’s largest IT services company Tata Consultancy Services (TCS) added 5,452 employees on a net basis in the fiscal first quarter, reversing three straight quarters of decline.
The Tata group company's headcount had dropped 1,759 sequentially in the March period.
With the latest increase, TCS employs 6,06,998 people, the company said on July 11 as it shared the numbers for the first quarter of the FY25.
“I am delighted to announce the successful completion of our annual increment process. Our continued focus on employee engagement and development led to industry-leading retention and strong business performance, with the net headcount addition being a matter of immense satisfaction," Chief Human Resources Officer Milind Lakkad said on July 11.
Attrition for the quarter fell to 12.1 percent, continuing its downward trend from the previous quarter’s 12.5 percent. The attrition rate has been falling from its peak as the job market has cooled down after the pandemic-led digital boom led to aggressive hiring.
The Mumbai-based firm’s headcount fell for the first time in 19 years in FY24, marking a shift since the company listed on the bourses in 2004.
For Q1, TCS reported a 9 percent year-on-year increase in net profit at Rs 12,040 crore. It posted a better-than-expected revenue at Rs 62,613 crore, up 5.4 percent from the year-ago quarter. A Moneycontrol poll had projected a profit of Rs 11,999 crore on a revenue of Rs 62,190 crore.
TCS and other IT companies have not been backfilling vacant posts as they have enough bench strength to meet demand. The IT sector has been witnessing weak demand due to uncertain macroeconomic conditions and falling discretionary spending.
Ahead of the results, TCS share price fell 0.6 percent today to end at Rs 4227.9 on NSE.
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