Wage cut plan pulls back TCS on bourses

Tata Consultancy Services is currently trading at Rs 477.20, down by 4.60 points or 0.95% from its previous closing of Rs 481.80 on the BSE..

The scrip opened in the green at Rs 482 and has touched a high of Rs 484 with a low of Rs 475.20. So far 3,80,454 shares were traded on the BSE.

The BSE group ‘A’ TECk sector stock of face value Rs 1 has touched a 52 week high of Rs 1054 on June 2, 2008 and a 52 week low of Rs 418 on October 27, 2008.

The BSE TECk sector index is currently trading at 1,733.84, down by 1.55% from its previous closing.

The price of the scrip has witnessed a positive change of 0.69% since last week and a correction of 4.52% since last month.

India’s largest software services exporter Tata Consultancy Services is considering a revision in the pay package for its employees, as part of the larger plan to cut costs. The company is mulling a review the variable component every quarter and has decided to increase employee working hours from 40 hours a week to 45 hours a week, with effect from April 1.

Variable pay accounts for 20-35% of TCS employees’ gross salary, depending on their hierarchy. The company had earlier reduces employees’ variable pay by around 1.5% in February last year.

The company is also likely to delay absorbing nearly 24,500 campus recruits, scheduled to join in June. TCS also plans to defer infrastructure and new projects to save costs.

The software exporter expects to report flat or lower Q4 results on increasing pressure from its US clients, who are seeking a cut in price ranging from 4 to 15%.