Yesterday, IT services provider, Tech Mahindra has announced its Q1 results for the financial year 2022. The company has reported 30.8% rise in its net profit for the first quarter of fiscal 2022 at Rs 1,353.2 crore as against Rs 1,081.4 crore in the quarter ended March 2021.
The company has added 5,200 employees in the June quarter and will hire more than 15000 fresher this year as it is confident about a double-digit growth trajectory in FY22.
Announcing the Q1 results CP Gurnani, CEO & MD, said, “We have witnessed an all-rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation,” said CP Gurnani, managing director and chief executive officer, Tech Mahindra,”
Gurnani said, “We will increase the fresher intake by 3 times (more than 15000) this year.” However, he did not specify any number.
“Tech Mahindra will also hire in focused verticals such as AI, IoT, deep tech, space tech and strengthen its leadership as it sees increased traction in the technology sector, where it counts unicorns and major tech companies as its clients,” he said
Tech Mahindra has reported Attrition at 17.2% for Q1FY22 and said that attrition is a concern. However, Gurnani said, “business plans are done for 16-18 percent attrition, and it has planned for higher attrition if required,”
Whatever, the company’s attrition is higher than its peers. For the quarter ended June, TCS reported attrition at 8.6%, Infosys at 13.9%, Wipro at 15.5%, and HCL Technology at 11.8%.
Speaking on the Return to Office Gurnani said, even as 80% of employees are vaccinated, the company has not legislated return to office for employees.
Gurnani added, “From 6-7%, we now have 20% of employees working from offices and that is voluntary. We have requested that those coming to office are doubly vaccinated, for theirs and safety of other employees and families,”
Some of the managers and processes are meeting twice a week face to face. Clients are also not insisting on coming back to offices. “Guidance has been given that till December 2021, everything will be voluntary,” he added.
Tech Mahindra’s Q1 dollar revenue was at $1,383.6 million, registering a growth of 4.1 percent from $1,329.6 million, QoQ.