TCS' Rs 2,628 cr bonus for its entire staff dents Q4 profit but creates Twitter buzz

Tata Consultancy Services, India’s largest IT player, today announced a one-time bonus for all its employees to mark ten years of the company’s listing on the stock exchanges.

The total consideration for this bonus will be Rs 2,628 crore, it added.

The company has about 319,000 employees globally. All employees who have completed at least a year of service with the company will be eligible for the bonus, TCS said.

Each employee will be given a reward equivalent to one week’s salary for every year of service completed at TCS, it added.

“Today, we act as a strategic partner to many global customers and TCSers are well—known for their ability to execute, innovate and provide leadership in the customer’s context,” CEO and managing director N. Chandrasekaran said. This special reward to employees acknowledges the role the employees have played in building TCS into one of the most respected and valued technology services companies in the world, he added.

Ironically, on social networking site Twitter, the total bonus amount of Rs 2628 crore was trending rather than the company.

twitter does not make difference between #Rs. 2,628 & # Rs. 2,628 Crores.........

— JUST THINK (@sktproc) April 16, 2015

Rs 2,628 is trending but TCS is not trending :P

— Nisha Bagul (@nishabagul) April 16, 2015

The #TCS people are so happy that Rs 2,628 is trending :P

— Utkrisht mittal (@mittalkanni) April 16, 2015

Rs 2,628 he dedo crore baad ki baat hai !

— Sherlock Holmes (@sherlock130191) April 16, 2015

However, the one-time bonus did dent the company’s fourth quarter profit which fell by 30 percent against the year ago period. Excluding that employee bonus paymen, TCS reported a net profit for the period of Rs 5773 crore ($927.37 . That was up 7.7 percent compared to the year-ago quarter helped by strong client spending in a seasonally slow period.

Shares in TCS, the largest company in India by market value, closed down 1.5 percent ahead of the results on Thursday, while the broader market closed 0.46 percent lower.