Tata Group's TCS loses Rs 24295 crore in just 4 days amid delay in annual salary hikes

TCS news: TCS, India's largest IT services firm, recently announced it would defer employee salary hikes that were scheduled to begin in April 2025. The Tata Group company cited global economic uncertainty and tariff concerns for the decision, saying the company will decide on wage hikes during this year. Amid this, Tata Consultancy Services (TCS) lost Rs 24295 crore in its market cap in a holiday-shortened week from April 7 to 11. Indian stock markets were closed on Thursday (April 10) for Shri Mahavir Jayanti. The valuation of TCS tanked Rs 24,295.46 crore to Rs 11,69,474.43 crore after the company's share declined by 3.82 per cent during the period and closed at Rs 3,238 on Friday (April 11). This week, the BSE benchmark Sensex declined 207.43 points or 0.27 per cent. The NSE Nifty dipped 75.9 points or 0.33 per cent.

TCS Chief HR Officer Milind Lakkad said on Thursday, "Because of the uncertain environment, we will decide during the year on wage hikes. It can be at anytime, depending on business." "Fresher hiring will be similar or may be higher in FY26," he added. Meanwhile, TCS CEO and MD K Krithivasan talked about the US tariff. He believes that the tariff moves-induced uncertainty impacting the sector will be 'short-lived' and expects it to get resolved within 'months'.

TCS results

On Thursday, TCS also reported a 1.68 per cent dip in its consolidated net profit to Rs 12,224 crore for the March 2025 quarter. It reported a total revenue of Rs 64,479 crore in Q4 FY25, up 5.3 per cent over the year-ago period. For the full year FY25, TCS' net profit rose 5.76 per cent year-on-year to Rs 48,553 crore. The IT heavyweight wrapped up the fiscal FY25 with a full-year topline growth of 5.99 per cent at Rs 2,55,324 crore. TCS' Q4 report card comes amid storm clouds over the global economy triggered by US now-on, now-off tariff posturing that has thrown the world into a tizzy.

(With inputs from PTI)

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