The company’s selling, general and administrative (SG&A) expenses reduced by 153 basis points (bps) implying it kept its cost under control.

“In a challenging market, TCS remained focused on execution discipline and kept pricing stable and therefore managed to grow profitably.” said N. Chandrasekaran, Chief Operating Officer. “We have closed some key deals across markets and sectors, acquired 41 new customers and have a healthy pipeline of deals across our diversified customer going forward.” Its operating margins, however, rose just 53 bps.

Hiring: uring Q3, there was a gross addition of 11,773 employees (net 8,692 employees) of which 8,704 were trainees and 1,696 were lateral recruits in India and 1,373 employees were added in overseas subsidiaries and branches. The total employee base was 130,343 professionals and 52 per cent of the workforce had more than three years experience.

The utilisation rate (excluding trainees) was 79.9 per cent (it fell 1.2 per cent this quarter) and the attrition rate in Q2 dropped to 11.9 per cent overall with 11.2 per cent attrition rate in the IT services business and 20.5 per cent attrition rate in BPO. Foreign nationals formed 9.1 per cent of the total employee base and 30 per cent were women.

“We have added over 30,400 people in the first nine months which is in line with our hiring plans for the financial year. Our retention rates for both IT services and BPO have shown significant improvement in the current quarter. We continue to focus on improving utilization rates and employee productivity,” said Ajoy Mukherjee, Vice President & Head, Global Human Resources.

Source: Business Standard