Yesterday, Tech Mahindra, a leading global IT services and consulting company, released its financial results for the first quarter of fiscal year 2025.
Headcount & Attrition at Tech Mahindra
The company added 2,165 employees in Q1FY25, raising the total headcount to 147,620, which is an increase from the 145,455 employees in Q4FY24.
However, this is still a year-over-year decrease of 677 employees, as the total headcount was 148,297 in Q1FY24.
Over the last twelve months (LTM), the IT attrition rate remained constant at 10% in Q1 FY25, the same as in Q4 FY24. This is an improvement compared to Q1 FY24, when the attrition rate was 13%.
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Rohit Anand, CFO, Tech Mahindra, said that most Q1 headcount growth came from hiring interns in the business process services (BPS) vertical. He emphasized that building their employee pyramid by onboarding freshers is crucial, with plans to continue this strategy and upskill their workforce in the coming quarters.
Financial Overview and Growth
Tech Mahindra reported a 23% year-on-year (YoY) increase in consolidated net profit, reaching Rs 851 crore in the June quarter. Revenue from operations decreased by 1% YoY to Rs 13,005 crore in the April-June 2024 period.
The fiscal first-quarter results of the IT services major met street expectations. A Moneycontrol poll of 10 brokerages had estimated Tech Mahindra’s Q1 net profit to rise to Rs 861 crore, primarily due to an exceptionally lower base in the previous quarter. Revenue was projected to slightly increase to Rs 12,968 crore.
Tech Mahindra’s earnings during the quarter were likely driven by portfolio shifts, volume growth, and cost management.
Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27.”
Tech Mahindra: Hiring Trends
The company hired about 1,000 freshers in Q1 and plans to conduct campus hiring this year to meet its target of adding 6,000 freshers for FY25.
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Commenting on the Salary Hike, CEO and MD Mohit Joshi said that Tech Mahindra is still evaluating the wage hike cycle. Employees have been informed that wage increments are deferred to the second half of the fiscal year and will be contingent on the company’s performance.
Recent Developments
The company has partnered with Microsoft to enhance workplace experiences using Copilot for Microsoft 365. They are deploying GitHub Copilot—an AI-powered coding assistant—for 5,000 developers within the organization.
The expected outcome is a remarkable 35% to 40% increase in developer productivity. Tech Mahindra is focused on leveraging next-generation technologies including 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.
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