TATA Consultancy Services (TCS) beat the market outlook by posting decent Q2 numbers following in Infosys path.
The net profit was at Rs 1,640 crore vs Rs 1,533 crore QoQ (Quarter-on-Quarter). The results are up 3.2% QoQ and 6.9% YoY.
TCS is expected to announce Full VA for its employees for the Q2 this month.
The positive results is expecte to boost IT stocks in the market despite Climbing Rupee.
TCS depicts a typical company where no unions are present. While TCS is projecting that it is still comfortable in terms of profits the company has shrewdly cut down the Variable Allowance components of employees. TCS plays two different tunes to media and its internal circulation. While announcing a 70% divident for its shareholders (The big executives of TCS management have huge stockpile of the shares) , it has said in its internal memo the times are tough hence no VA.
This is whats called as double standard. Look at the measures TCS has undertaken in last few months before announcing quarter results.
* Canteen food prices increased by 40-60% and many cases the quality and quantity also has reduced.
* Doubled office transportation prices (Office Bus) Chennai employees pay at an average of Rs 2500 per month and the buses are not AC or even Deluxe. Reduced frequency.
* No Night shuttle for workers in Night shifts.
* Switch off AC after 9 PM but 20% employees work after 9 PM shift with not even a fan.