Tech Mahindra adds 2,165 employees in Q1FY25

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IT services firm Tech Mahindra reported a net employee addition of 2,165 sequentially for the first quarter ended June 30, in line with the company’s plans to add more people this financial year.

On a YoY basis, headcount was down by 677. Total headcount in Q1 stood at 147,620.

Rohit Anand, CFO, Tech Mahindra shared that a majority of this headcount addition in Q1 came from hiring interns in the business process services (BPS) vertical.

Anand said, “We continue to build our employee pyramid as we on boarded freshers for the talent pool this quarter and we continue to add more in the coming quarters. Investing in this is a long-term perspective for us as the single-most important factor. We will also continue to upskill people in a strategic narrative.”

“Adjusting for interns hired, headcount is broadly flat on a QoQ basis,” he added.

The company added around 1,000 freshers in Q1, and will be going for campus hiring this year to meet its fresher addition target of 6,000 for FY25.

Attrition remained flat sequentially at 10 percent and improved YoY from 13 percent in Q1FY25.

On wage hike cycle, CEO and MD Mohit Joshi shared that Tech Mahindra is still assessing and has informed the employees that their wage increments have been pushed to the second half of the fiscal year and will depend on the company’s performance.

In Q1, rival Tata Consultancy Services (TCS) added 5,452 employees on a net basis, reversing three straight quarters of decline. Meanwhile, Infosys’ headcount plunged by 1,908, Wipro  added 337 employees and HCLTech's headcount declined sequentially by 8,080 respectively in Q1FY25.

LTIMindtree was an exception, which added around 284 employees sequentially in Q1.