Bengaluru-based IT major Mindtree made a net addition of over 3,400 people for the quarter ending June 2021, its highest ever in a quarter. As demand remains robust, the company is also ramping up hiring and will roll out hikes, said Debashis Chatterjee, CEO, Mindtree.
Speaking to media persons after the results announcement on July 13, Chatterjee said, the company is seeing its growth accelerate and it is ramping up its hiring to cater to the growing demand.
“We are also looking at second round of hikes up to the mid management level,” he said.
The move comes even as the attrition levels are increasing even as it signed up a record $500 million in deals for the quarter. Mindtree saw its attrition level increase to 13.7 percent in the first quarter of the year from 12.1 percent for the quarter ending March 2021. Total employee count stood at 27,256 in the quarter.
The company's revenues stood at $310.5 million, up 22.6 percent year-on-year (y-o-y), for the quarter. Its net profits increased to $46.5 million, up 64.7 percent y-o-y in the same quarter.
This has resulted in increased subcontracting cost as well. Haitong Securities in a note said that sub-contracting cost increased to 11.3 percent for the quarter, higher than the 7-9 percent band for the firm.
Chatterjee said, “Demand is very robust and you do deploy subcontractors for that particular period. So as far as supply side is concerned we have managed the situation fairly well. We firmly believe that we will manage well as we go along.”
The company is also increasing the fresher intake significantly. “Though the attrition has gone up a little, we are really confident in terms of how we manage the business and should not get into supply side constraint,” he said.
Read: Mindtree Q1 profit rises 8% QoQ to Rs 343 crore, order book exceeds $500 million
Considering that the company is bullish on the demand, hiring is likely to at an all-time high, he said. However, he did not share the numbers.
On work from home front, Chatterjee said, “Pandemic isn’t over, we are already talking about a potential third wave. We are vaccinating our Mindtree minds very aggressively and that is within our control and we are trying to do that.”
However, he said, the company is ready to open the offices as and when it is required and taking in clients’ views on the same. “Whatever readiness required from operational side to get employees back to office we have done all that. But we will only do that when we feel it is safe for our employees to get back to office and commute so on and so forth,” he added.
Whatever we do, we are in close touch with our clients and taking their views as well on getting back to office and what their views are as well.
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