Tata Consultancy Providers (TCS) has deferred its annual wage hikes, which have been scheduled to start in April, citing ongoing macroeconomic uncertainty and considerations across the evolving US tariff panorama.
Firm executives, talking at a press convention on Thursday, stated the hikes could be rolled out later within the monetary yr, as soon as the setting stabilizes and the corporate positive factors clearer visibility.
“We are going to resolve throughout the yr when to make the wage hike,” stated Milind Lakkad, the outgoing chief human sources officer (CHRO).
This transfer echoes the same step taken by TCS 5 years in the past on the onset of the COVID-19 pandemic, when international enterprise was severely disrupted. It additionally underlines the present warning inside the info know-how sector, the place corporations are intently managing prices amid consumer uncertainties.
Ok Krithivasan, chief government officer, famous that the corporate has already begun seeing indicators of pressure in consumer spending habits.
“There shall be delays in discretionary spending if this continues,” he stated, highlighting mission delays and slower ramp-ups as purchasers reassess their budgets in mild of pending tariffs.
Whereas annual wage will increase are on maintain for now, TCS will proceed with quarterly variable payouts. For the fourth quarter, 70% of staff will obtain 100% of their eligible variable pay, whereas the rest will obtain variable compensation based mostly on enterprise efficiency.
Regardless of the wage hike deferral, TCS plans to keep up its campus hiring momentum. The corporate will rent round 42,000 engineers from engineering schools this yr, in step with its earlier yr’s dedication. Within the fourth quarter ended March 31, the corporate added 625 staff, bringing its whole headcount to 607,979. For the complete monetary yr, it noticed a internet addition of 6,433 staff, reversing a decline of 13,249 within the earlier yr.
Attrition inched as much as 13.3% within the fourth quarter, in comparison with 13% within the earlier quarter. Lakkad confirmed that TCS efficiently onboarded 42,000 freshers over the course of FY25 as deliberate.
This fall and full-year outcomes
TCS reported a internet revenue of Rs 12,224 crore for the fourth quarter of FY25, a 1.7% decline from ₹12,434 crore in the identical quarter of FY24. Income for the quarter grew 5.3% year-on-year to Rs 64,479 crore, and was up 0.79% sequentially.
For the complete monetary yr, the corporate reported a internet revenue of ₹48,553 crore, a rise of 5.8%, whereas annual income reached ₹255,342 crore, up 6% year-on-year. With this, TCS crossed the $30 billion income mark.
The order e book whole contract worth (TCV) stood at $12.2 billion in Q4FY25, in comparison with $10.2 billion within the earlier quarter. TCVs for the primary two quarters of the yr have been $8.3 billion and $8.6 billion, respectively.
