TCS reports 8.8% year-on-year rise in profits Indian IT outsourcing group Tata Consultancy Services Ltd (TCS) reported an 8.4% rise in second-quarter profits on Thursday, despite saying some clients had been holding back on spending due to an uncertain business climate.

MUMBAI: TCS' tepid performance will also hit its employees' wallets. On a post-earnings conference call, TCS CEO N Chandrasekaran said that employees in units that have not performed well will take a hit in their quarterly variable payout."Variable pay is linked to individual units. This quarter some units have not performed, those units will be impacted. The junior employees will be paid. Let's leave it at that," Chandrasekaran said. The most junior employees are expected to get 100 per cent of their quarterly variable allowance. The next rung will get 50 per cent of the payout.Higher grades are expected to get 0-50 per cent of the variable allowance, based on the performance of their unit, TCS told employees in an email sent after it announced results on Thursday. TCS employs over 3.71-lakh staff and the lower payout comes just ahead of the Diwali festival season. But because the payout is so closely aligned to the performance of business units, not all TCS employees are unhappy with their payout.TCS told employees in an email sent after it announced results on Thursday. TCS employs over 3.71-lakh staff and the lower payout comes just ahead of the Diwali festival season. But because the payout is so closely aligned to the performance of business units, not all TCS employees are unhappy with their payout."My payout this year is actually better than what I got last year," one employee told ET.