Tata Consultancy Services, commonly known as TCS is a dream company for many people looking for a job. A job in the corporate world is never safe unless you are placed somewhere in the Tata group of companies. Tata has always given a feeling of comfort to its employees which make them feel at home. This is where it wins and the employees start caring. Everything is not achieved with the help of money, sometimes you need to care for your employees and Tata does that.
That said, TCS is one of those companies which is counted amongst the biggest in the world. It is also the largest company in India is in the news currently for its profitability. The company is grabbing the headlines after posting a stunning $1.15 billion profit in the fourth and the final quarter. The revenue on against which this profit is generated stands at $5.40 billion. Bloomberg reported that analysts had predicted the exact profit on $5.46 billion in revenue.
Meanwhile, IT companies have had to spend an extravagant amount on hiring talent in the US and other countries. There is a lot of talk about the talent shortage and money being thrown at hiring the right people for the job. Talent scarcity is also one of the biggest problems in the IT industry at the moment. Due to this, the IT giants have to pay exponentially high salaries which increase the expenditure.
Apart from this, IT firms in India are spending huge amounts on talent development and reskilling the employees in India. This is basically done to sharpen the offshore base of the company. And this also leads to a lot of expenditure. That being said, the companies are facing margins problems. Margins in this financial year have taken a hit because of this cycle of a shortage of talents leading to higher wages.
Although, the Indian IT firms have a better arena for development and demand. The rupee depreciation is also supporting the IT firms in many ways than necessary. The fourth quarter being weak, every time usually, TCS profits are anything but tame.
TCS shares are also on the rise with this kind of development. The rise is a massive 11 percent in the last three months. The shares shut at a wonderful INR 2013.75 on Friday at the Bombay Stock Exchange. That said, the company is doing extremely well while Infosys is also not far behind it. Both the companies have kindly kicked off the season of earning for the IT industry in India.