TCS shares fall post Q2 results

The shares of IT major, Tata Consultancy Services (TCS) dipped as much as 1.48% to hit an intra-day low of ₹3,054 despite the company posting a 8.4% growth in its year-on-year profit at ₹10,431 crore. According to the company’s stock exchange filing, the company’s revenue surged 18% YoY to ₹55,309 for the September quarter, while its revenue in constant currency grew 5.4% on a year-on-year basis. 

Rajesh Gopinath, chief executive and managing director, TCS said, “Demand for our services continues to be very strong. We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration, and outsourcing engagements.”

The company’s board also declared a second interim dividend of ₹8 per equity share of the company, which is to be paid on November 7 this year, to the shareholders. “The second interim dividend shall be paid on Monday, November 7, 2022, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Tuesday, October 18, 2022, which is the Record Date fixed for the purpose,” the company said in a regulatory filing. 

The IT major announced the first interim dividend of ₹8 per equity shares earlier this year, which was paid by August 3. 

The company also announced that 70% of its employees will get 100% variable pay this year, while the remaining 30% will get paid based on their business unit performance. 

The development comes at a time when TCS’ attrition rate continues to remain the highest in the information technology (IT) industry at 21.5% on an annualised basis. The company’s workforce comprised 157 nationalities and with women making up 35.7% of the base. The company said that it has hired as many as 20,000 freshers this quarter, and said that it plans to onboard 45,000 to 47,000 employees this fiscal year.