Tata Consultancy Services (TCS) is the biggest IT company in India. TCS has announced Q1 FY21 results. TCS had done a fantastic job explaining about return to work, freshers joining, visa restrictions, and many other questions asked.
If you are like the majority of the software engineer, you may find the Quarterly results related news boring except if you are into Stock Market and other investment areas.
Here are the TCS Quarterly results for Q1 FY21 in a more user-friendly way where we can understand the message behind those numbers and speeches and skip the messy information.
If you are new to the Indian IT Industry, TCS Fresher, or joining the TCS, you can scroll to Q&A; however, I recommend reading this full story.
Key Message from Management: All is well [They did not say it, but it sounded like]
- TCS net profit falls 13%. In layman terms, TCS profit was INR 8,131 crore last year, whereas this year only INR 7,008 crore, which makes 13.8% less than last year.
- Unsurprisingly pandemic played a crucial role in revenue decline.
- Another way to look at it, TCS still got a profit of INR 7,008 crore.
Latin America has 0.2% growth, and Continental Europe had 2.7% growth, other than these two, all markets were down.
Retail and Manufacturing is the highest hit domain in this pandemic, whereas Life science and healthcare domain witnessed massive growth in the business.
TCS cracked 4 new deals worth $100 Million+, 11 new contracts worth $20 Million+, and 13 new deals worth $5 Million+
Employees Related information:
- TCS added 4,788 new employees, closing headcount stands 443,676
- TCS had 11% attrition rate, 11% of employees left TCS
- TCS has 36.2% Women employees
- TCS employees spent 7.9 Million hours on learning and development
- 353k+ employees are training in Digital technologies
- 417k+ employees are training in Agile
Questions and Answers(Q&A) session with top Media Companies
When do you think the recovery will start? When we can say we have passed this pandemic?
It depends on which geographical area we are talking about; We expect North American business to recover by the End of Q3. We are working closely with our clients through the TCS’ Secure Borderless Workspaces.
There are recent trends reported where Indian companies are revising their bench policy and forcing employees to resign. What is the stand of TCS on this?
We have no plan of revising Bench Policy in the TCS. We strongly believe that Bench is just an outcome of specific business parameters, and we somehow need to manage it. Our primary goal would be to train employees in newer technologies and upskill them and use talent.
Why is the headcount decreased ~4K in TCS?
The number of People left us was more than what we hired. We strategically utilized our existing talent by shuffling them into a different project.
What do you think about the Visa Restriction policy by the US?
Visa restriction proclamation is very unfortunate and unfair. I firmly believe that we may be impacted short term; however, we are confident that the current Onsite and Offshore ratio and TCS’ Secure Borderless Workspaces will help us succeed.
Are you planning to do more Offshoring? And if yes, then it is due to Visa or COVID-19?
We want to do more Offshoring as many of our clients are becoming comfortable with the secured borderless workspace. However, it is difficult to bring people back to India due to the current pandemic situation.
Is there any pressure on pricing or negotiation from clients? And what TCS is doing about it.
TCS is working diligently with clients and providing all possible support. Deferred payment options are worked depending upon case to case basis and reviewing our strategic vision and our long-term relationship with clients.
What is your plan for Freshers hiring in TCS?
We have virtually connected to many future employees already. TCS has a plan to onboard 40K+ freshers July onward up till End of this year.
What is the plan for returning to work for TCS?
By End of this quarter, we will bring 5% of our global employees back to work; however, it depends on Government guidelines and local authorities permissions. 1% of TCS employees are already working from their facilities.
Below statements were goosebumps movement for some of the employees:
This Q1 2020 was a very satisfying quarter from execution purpose; however, the story of Q1 is not about TCS’ Secure Borderless Workspaces™ or Execution. It is about the Amazing TCS family that has come together and stood shoulder-to-shoulder as one TCS and responded to this crisis amazingly.
Employees’ health and welfare had been our highest priority and critical factor for all decision making. We are proud to say that 40K freshers will join from July till year-end.
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