TCS announces Q3, Stellar performance, No Salary Hikes ,Promotions – yes

TCS announced its 2009-10 Q3 results today and produced better than expected numbers.

Q3 Revenues at $1.64 Billion up 10.3% YoY and 6.3% QoQ
Q3 Net profit at $364 billion up 38.9% YoY ; up 14.2% QoQ

TCS also added 10 major clients.
Able to maintain margins by leveraging offshore movements.
Overall growth in All verticals.
BFSI also grew considerably.

Also Ashok Mukherjee announced there wont be any wage hikes this year, they might decide on the hikes after April 2010.

Given the excellent performance of the company in this quarter, I am happy to share with you that management has decided to pay once again 1.5 times of the quarterly component of the variable pay (QVA) for the quarter ended December 31, 2009. This will apply to all eligible employees on India payroll.

Additionally, we have decided to go ahead with the 2009 promotion cycle globally with effect from January 1, 2010. This will apply to all associates recommended as per our process and guidelines.

For this Quarter there is a 50% hike in VA.

More updates as information is available

See the US GAAP presentation here

TCS to announce prmotions in January 2010

Update – Jan 20 2010 –

Only Manufacturing ISU has completed 90% of promotions. Rest of the ISU’s the list has not been finalised, so you guys might have to wait longer. Anyway the promotions will be given one way or the other. Dont lose hope.

TCS announced promotions on Jan 15 2010 as a part of its Q3 results.

Given the excellent performance of the company in this quarter, I am happy to share with you that management has decided to pay once again 1.5 times of the quarterly component of the variable pay (QVA) for the quarter ended December 31, 2009. This will apply to all eligible employees on India payroll.

Additionally, we have decided to go ahead with the 2009 promotion cycle globally with effect from January 1, 2010.  This will apply to all associates recommended as per our process and guidelines.

Update 1 – As of Jan 08 2010, HR approved all eligible cases as per Jul 2009 and recommended candidates. So if you are eligible your prmotion should be under Corporate HR by now.

TCS HR is gearing up to handle the new promotion Cycle which will be run during January 2010, but the big question is Will it be Based on Jul 2009 or Jan 2010 eligibility?. Even the HR heads are in the dark on this question, but they are preparing two lists in anticipation of any one of these two criteria. But January Promotion Cycle is a sure thing and will be run in middle of January. Already HR heads of respective locations have sent internal memos about vacation/leaves during this period to the HRs.

Till the time Corporate makes public of the new promotion eligibility criteria dont expect HR to approve your promotion, as they dont want to do a rework next month.

On an interview to CNBC 18 our new CEO Chandrasekaran was quoted as below

Improvement in the sector is inevitably followed by the firming up of wages. Do you see salary costs also moving up after a flat year?

Yes, definitely. We did not have a wage increase last year, so there will be a certain amount of wage increase. But it will be moderate. We are going through the details at this point in time, and we will be finalizing it shortly. But there will be moderate wage increase.

More updates will be posted as soon as available.. Add your feedback here.

TCS gives its employees a Diwali surprise – 1.5 times the VA (Diwali Bonus ?)

TCS has been in the news for All bad reasons recently, for a change today the TCS Management has announced 50% increase in VA Quarterly component for the just concluded quarter. This is applicable only for this quarter and not future VA components.

Most of the employees are expected to receive the increased VA in october salary, this will  give a minimum bonus of Rs 4000 and upwards . This could be a way the company is trying to mend way with its employees and probably a Gift from the new CEO N Chandrasekharan.

Below is the excerpt fromVP & Head of Global HR , TCS

Congratulations and thanks to all of you for your tremendous effort. Considering the performance of the company in this quarter, I am pleased to announce the management decision to pay 1.5 times of the quarterly component of the variable pay for the quarter ended 30 September, 2009, applicable for eligible employees on India payroll.

Anyway Happy Diwali everyone..