TCS to shut down Lucknow operations leaving 2000 IT employees in limbo

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The widely tracked dollar revenue of TCS came in at $4,591 million, up 3.1 per cent sequentially.

Currency volatility and wage hikes crimped largest software exporter TCS' bottomline with a 5.9 per cent drop in the June quarter at Rs 5,945 crore, while its revenue inched up a paltry 1 per cent to Rs 29,584 crore.

India's largest IT services firm Tata Consultancy Services reported a almost 6 percent fall in quarterly earnings Thursday owing to a strengthening rupee, the company said. "We are committed to grow the business in UP, & are consolidating operations in Noida", the company said in a statement.

"Operating margin for the quarter was 23.4 per cent, while net cash from operations grew 104 per cent of net profit", said the city-based IT major in a statement here.

Chief financial officer V Ramakrishnan said TCS continues with its currency hedging strategies despite the reverses in the reporting quarter.

A few TCS employees had approached the Yogi Adityanath-led BJP government, while others had approached the media with complaints that 2,000 individuals working in the Lucknow officer were about to lose their jobs as TCS as the company had made a decision to wind up its operations. A few years ago, it shifted its office in a multi-storied building in posh Gomtinagar when it bagged majority of government big projects. It also said that the sector needs to reinvent itself. The total attrition rate was at 12.4% including BPS, with IT attrition at only 11.6%.

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TCS CEO and MD Rajesh Gopinathan said the company has seen steady growth across industries in the first quarter of the fiscal.

Demand from major markets led to 3.1 per cent growth in dollar terms, while volume growth was 3.5 per cent.

Mukherjee said the number of United States visa applications were the same as past year, when it had come down in the wake of rising protectionism in that market.

The management said the teams are being relocated to its Noida centre and that "there will not be any layoffs because of this exercise".

The company declared an interim dividend of Rs 7 per equity share of Re 1 each.