Tata Consultancy Services (TCS) is offering an increment to its employees with effect from October 1, in appreciation of their “resilience” during the pandemic. The Company has also announced a share-buyback programme worth up to Rs 16,000 crore, despite quarterly profit dropping by about 7 per cent.
The workforce strength at TCS is about 453,540 as of September 30, 2020. The Indian multinational company has been continuously investing in talent development, and focussing on upskilling and training. Its employees put in about 10.2 million learning hours in Q2. More than 3,52,000 employees have been trained on multiple new technologies, and almost four and a half lakh have been trained on agile methods. The IT company had begun onboarding freshers, and increased their hiring globally in the second quarter, in anticipation of future growth.
The salary hike will be effective from October 1.
As for the share buyback initiative, the Company had undertaken a similar programme about three years back too. This time, the board of TCS has given its nod to a proposal to buy back up to 5.33 crore equity shares, that is, 1.42 per cent of the total paid-up equity share capital, at Rs 3,000 per equity share, for an aggregate amount of not more than Rs 16,000 crore. The offer price for the buyback is 9.6 per cent more than the stock’s closing at Rs 2,737.40 on BSE on October 7.