TCS Celebrates 10 Years of Listing With Mega Bonus for Employees

Tata Consultancy Services on Thursday said it will give a one-time bonus to all eligible employees to mark the 10th anniversary of its initial public offer or IPO. India's biggest outsourcer will give one week's salary for every year of service rendered, a move that will cost the company $423 million or Rs 2,628 crore.

Employees who have completed at least one year in service will be eligible to receive the one-time bonus, TCS said. TCS employs 3.19 lakh consultants worldwide.

The country's biggest software exporter also announced an average salary hike of 8 per cent for its employees in India. Overseas employees will get an average hike of around 2-4 per cent. (Read)

Commenting on the one-time bonus, N Chandrasekaran, CEO and MD of TCS, said: "This special reward to employees acknowledges the role they have played in building TCS into one of the most respected and valued technology services companies in the world."

The one-time reward for employees comes months after TCS announced 100 per cent variable payout for employees in January. TCS' competitor Infosys had also announced 100 per cent variable bonus payout for its employees in January. (Read)

Frontline IT companies such as Noida-based HCL Tech also rewarded top performers in the previous quarter.

Ten years of listing:

TCS was listed in 2004. Its shares have done exceedingly well as the company notched industry-leading growth rates. TCS is now India's biggest firm with a market capitalization of Rs 5 lakh crore. It's also the country's most profitable firm. (Read: TCS Emerges as India's Most Profitable Firm)

One-Time Bonus Hits Q4 Profit
TCS reported a 29 per cent fall in its net profit in the fourth quarter ended March 31, 2015, on a sequential basis. Its net profit fell to Rs 3,858 crore in the fourth quarter. However, after excluding the impact of one-time bonus of Rs 2,628 crore, its net profit came at Rs 5,906 crore. This is higher than the estimates of Rs 5,392 crore based on an NDTV poll of analysts. (Read)

Its revenue remained flat during the March quarter at Rs 24,220 crore. TCS had reported a net profit of Rs 5,444 crore on sales of Rs 24,501 crore in the December quarter.