Indian IT company Tech Mahindra announced its June quarter results for the financial year 2022 and reported a 30.8 percent growth in net profit.
Tech Mahindra reported a high attrition rate of 17 percent in the Q1 of FY22, up from 13 percent of the previous quarter. The attrition rate is concerning for the company as it’s higher than its peers.
The company has added 5200 employees in the June quarter and will hire more than 15000 freshers in the current year as it is confident about a double-digit growth trajectory in FY22.
CP Gurnani, CEO of Tech Mahindra, commenting on the Q1 results, said, “We have witnessed an all-rounded performance in the quarter with growth across key markets and industry sectors.”
He added that the company would increase the fresher hiring by three times this year. In addition, Tech Mahindra will hire in focused verticals like AI, deep tech, IoT, space tech and strengthen its leadership as it sees increased traction in the technology sector, where it counts unicorns and big tech companies as its clients.
Tech Mahindra attrition rate
Tech Mahindra has recorded an attrition rate of 17.2 percent in the June quarter and said it is a concern. However, Gurnani said business plans are done for 16 to 18 percent attrition, and it has planned for higher attrition if required.
Whatever the company’s attrition rate is higher than other IT companies for the June quarter. TCS reported attrition at 8.6 percent, Wipro at 15.5 percent, Infosys at 13.9 percent, and HCL at 11.8 percent.
Gurnani said that even as 80 percent of Tech Mahindra employees are vaccinated, the company has not legislated to return to the office for them.
He added from 6 to 7 percent; the company now has 20 percent of employees voluntarily working from offices. And all these employees coming to the office are vaccinated with both doses.