Tata Consultancy Services (TCS) postponed its annual salary increases, which were to start in April, citing macroeconomic uncertainty and current concerns concerning the evolution of the American tariff landscape.
The business leaders, speaking at a press conference on Thursday, said that the increases would be deployed later during the financial year, once the environment is stabilized and that the company has obtained clearer visibility.
“We will decide during the year when going to wage hike,” said Milind Lakkad, the outgoing human resources director (Chro).
This decision echoes a similar step taken by TCS five years ago at the start of the COVVI-19 pandemic, when global activities were seriously disrupted. He also underlines current prudence in the information technology sector, where companies closely manage costs in the midst of customer uncertainties.
K Krithivasan, chief executive officer, noted that the company had already started to see signs of pressure in customer spending habits.
“There will be delays in discretionary expenses if it continues,” he said, highlighting the project delays and slower increases while customers re-evaluate their budgets in the light of pending rates.
Although annual wage increases are pending for the moment, TCS will make quarterly variable payments. For the fourth quarter, 70% of employees will receive 100% of their admissible variable salary, while the rest will receive variable remuneration depending on the performance of the company.
Despite the salary hike, TCS plans to maintain its impulse on the campus. The company will hire around 42,000 engineering college engineers this year, in accordance with the commitment of its previous year. In the fourth quarter finished on March 31, the company added 625 employees, bringing its total effort to 607,979. For the full financial year, it experienced a net addition of 6,433 employees, reversing a drop of 13,249 the previous year.
Attrition increased up to 13.3% in the fourth quarter, compared to 13% in the previous quarter. Lakkad confirmed that TCS had managed to embark 42,000 recruits during fiscal year 25 as planned.
Q4 and results of the full year
TCS declared a net profit of RS 12224 crosses for the fourth quarter of fiscal year 25, a drop of 1.7% of 12,434 crosses in the same quarter of the financial year 24. The turnover of the quarter increased by 5.3% in annual sliding to Rs 64,479 crore and increased sequentially by 0.79%.
For the full financial year, the company declared a net profit of 48,553 sterling books, an increase of 5.8%, while annual income reached 255,342 crores of ₹, up 6% in annual shift. With this, TCS has crossed the income mark of $ 30 billion.
The total value of the total contract (TCV) amounted to $ 12.2 billion in the fourth quarter25, against $ 10.2 billion in the previous quarter. TCVs for the first two quarters of the year were 8.3 billion dollars and $ 8.6 billion respectively.
