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Indian companies' employee expense crosses Rs 1 lakh cr
By siliconindia
|
Tuesday, 03 July 2007, 19:30 IST |
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New Delhi: The ever expanding workforce and increasing salary levels has led the employee expense bill of the Indian companies to grow beyond 
1 lakh crore. The collective employee expenses of companies, both public and private sectors, whose financial year ended on March 31 and of those which announced their full year results, have grown to 1,14,900 crore. This represents a 35 percent gain over 85,000 crore in the previous financial year.
However, the combined turnover of these 505 companies increased to 14,31,209 crore, a 13 percent increase from the cumulative turnover of 644 companies last year. The annual results of these companies available with stock exchanges shows that The companies spent close to eight percent of their collective turnover on employee expenses in FY06 when compared to six percent a year ago. State Bank of India (SBI) remained the country's biggest spender with annual employee cost of 10,600 crore. Tata Consultancy Service (TCS) followed SBI with a bill of over 7,700 crore.
Domestic IT giants, Infosys and Wipro, incurred employee expenses of 6,314 and 5,768 crore respectively. At the fifth place was PSU steel giant SAIL with a bill of 5,133 crore in the year-end. While Satyam's employee expenses stood at 3,858 crore in FY07, ONGC and Indian Oil spent close to 3000 crore each.
Besides IT firms, 14 banks both from public and private sectors featured in the top 50 companies in terms of employee expenses. ICICI bank was at the ninth position with a total expense of 2,636 crore. Other major banks spent between 2000 crore to 2,400 crore on employees. Companies like Tata motors, Mahindra and Mahindra, L&T, Birla Nuvo, Bharti Airtel, Relliance Communications, Tech Mahindra etc had expensed between 1,000 crore and 2,500 crore. Most major spenders have seen an increase in employee expenses in FY07
1 lakh crore. The collective employee expenses of companies, both public and private sectors, whose financial year ended on March 31 and of those which announced their full year results, have grown to 1,14,900 crore. This represents a 35 percent gain over 85,000 crore in the previous financial year.
However, the combined turnover of these 505 companies increased to 14,31,209 crore, a 13 percent increase from the cumulative turnover of 644 companies last year. The annual results of these companies available with stock exchanges shows that The companies spent close to eight percent of their collective turnover on employee expenses in FY06 when compared to six percent a year ago. State Bank of India (SBI) remained the country's biggest spender with annual employee cost of 10,600 crore. Tata Consultancy Service (TCS) followed SBI with a bill of over 7,700 crore.
Domestic IT giants, Infosys and Wipro, incurred employee expenses of 6,314 and 5,768 crore respectively. At the fifth place was PSU steel giant SAIL with a bill of 5,133 crore in the year-end. While Satyam's employee expenses stood at 3,858 crore in FY07, ONGC and Indian Oil spent close to 3000 crore each.
Besides IT firms, 14 banks both from public and private sectors featured in the top 50 companies in terms of employee expenses. ICICI bank was at the ninth position with a total expense of 2,636 crore. Other major banks spent between 2000 crore to 2,400 crore on employees. Companies like Tata motors, Mahindra and Mahindra, L&T, Birla Nuvo, Bharti Airtel, Relliance Communications, Tech Mahindra etc had expensed between 1,000 crore and 2,500 crore. Most major spenders have seen an increase in employee expenses in FY07