On January 24, IT giant Tech Mahindra reported its audited consolidated financial results for the third quarter ending on December 31, 2023.
The company reported December quarter net profit slumped 60 percent on-year to Rs 510.4 crore as against Rs 1,296.6 crore registered during the same period last year.
Key Highlights
- Drop in net profit stood at INR 510.4 crore
- Drop of 4,354 employees, the total headcount stood at 146,250.
- Drop in attrition, stood at 10% in the third quarter.
The IT giant reported a drop of 4,354 employees in Headcounts compared to the previous quarter. The total headcount in the third quarter stood at 146,250.
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However, the company has continuously improved its employee attrition rate which stood at 10.0% for the third quarter ending on December 31, 2023. In the previous quarter, its Attition was 11%.
Headcount of Peer Companies in Q3FY24
If you look at the Drop-in Headcounts in its peer companies Like TCS, Infosys, Wipro and HCLTech below is the data.
| Company | Q1FY24 | Q2FY24 | Q3FY24 |
| TCS | 6,15,318 | 6,08,985 | 6,03,305 |
| Infosys | 3,36,294 | 3,28,764 | 3,22,663 |
| Wipro | 2,49,758 | 2,44,707 | 2,40,234 |
| HCL Tech | 2,23,438 | 2,21,139 | 2,24,756 |
Attrition of Peer Companies in Q3FY24
During their third-quarter results ending on December 31, 2023, all top IT companies like TCS, Infosys, HCLTech, and Wipro announced reduced Attrition Rates.
If you look at the last three consecutive quarters, attrition is continuously dropping, and are expected to see a sharp drop in attrition rates in the coming quarters.
| Company | Q1FY24 | Q2FY24 | Q3FY24 |
| TCS | 17.8% | 14.9% | 13.30% |
| Infosys | 17.3% | 14.6% | 12.90% |
| Wipro | 19.2% | 14.2.3% | 14.20% |
| HCLTech | 16.3% | 15.5% | 12.80% |
Commenting on the Q3FY24 results, Mohit Joshi, Managing Director & Chief Executive Officer, Tech Mahindra, said, “The quarter was a mixed outcome, with growth in the Manufacturing and Healthcare segments but muted spending in areas like Communications, BFSI, and Hi-tech. While this dichotomy in the markets will take its own time to settle, we are focusing internally on realigning under the new structure and strengthening the foundations of our organisation.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “This year has allowed us to step back and review our portfolio. We are confident that these actions will help us correct our course and deliver value in the long term. We are encouraged by the robust cash conversions this year, and we hope to continue this rigor in other operational areas as well.”
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