IT services firm Tech Mahindra's net employee addition for the full fiscal year of FY23 was significantly down by 95.93 percent with an addition of 1,227 employees, as compared to 30,119 in FY22. This was in line with the industry-wide trend of slowdown in hiring after a year-long rally of record employee addition in the previous fiscal.
Total headcount for FY23 stood at 152,400. Overall headcount after fourth quarter ended March 31, 2023 declined by 4,688 QoQ.
In Q3FY23 too, the net new employee addition had declined by 6,844. In Q4 last year, Tech Mahindra had added 6,106.
Attrition rate dropped to 15 percent from 17 percent in Q3. The firm has been seeing a drop in attrition rate since the first quarter of FY23 after a steady increase in the five quarters before that.
Harshvendra Soin, Global Chief People Officer and Head of Marketing at Tech Mahindra said, "Our attrition continues to drop and remain the lowest in the industry."
Commenting on the slowdown in hiring, Soin added, "In FY23, our main focus was on upskilling. While our focus continues on upskilling and providing opportunities to our internal folks, we will increase our fresher hiring significantly this year and put them through our upskilling engine."
Though Soin declined to share fresher hiring target for FY24, he said that the company evaluates the same on a quarterly basis. He expects to increase fresher hiring by about 2-3X in the current fiscal year, without disclosing the full-year fresher addition of FY23.
In January this, speaking with Moneycontrol at the World Economic Forum in Davos, Chief Executive Officer and MD, C P Gurnani, had said that hiring will be higher when attrition is higher, and net hiring will be low when attrition starts declining.
“Hiring cannot always be linear. The reality is that AI, data, and automation are part of our lives. If it is not linear, revenue goes up. If you don't hire, please do take into account that we are becoming more efficient with automation,” he said.
Tech Mahindra reported its Q4FY23 earnings on April 27. Consolidated net profit of the company stood at Rs 1,125 crore for the March quarter of 2022-23, down 27 percent from Rs 1,545 crore it reported a year ago.
Revenue from operations came in at Rs 13,718.2 crore, flat on a sequential basis and up 13 percent year-on-year. In constant currency terms, revenue grew only 0.3 percent sequentially.
EBIT margin or operating margin for Q4FY23 dropped to 9.6 percent as compared to 12 percent last quarter.
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