Tech Mahindra adds 6,653 employees in Q2FY25

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IT services firm Tech Mahindra reported a net employee addition of 6,653 employees sequentially for the second quarter ended September 30, in line with the larger industry-wide trend of IT companies hiring again after a slowdown in FY24.

Tech Mahindra reported the highest quarterly headcount addition in Q2 among its top 5 IT services peers, including Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro.

On a year-on-year basis, headcount was up by 3,669. Total headcount stood at 154,273.

The company’s last twelve-month (LTM) attrition has inched up slightly to 10.6 percent up from 10 percent in Q1.

Tech Mahindra has also been on boarding freshers this fiscal year. With a target of hiring more than 6,000 freshers, the company has already added over 2,000 freshers in Q2. In Q1, the company had added about 1,000 freshers.

In Q2, rivals TCS added around 5,726 employees, followed by Infosys which added 2,456 employees after six consecutive quarters of headcount decline. Wipro's modest addition of 978 employees came with a caveat, as the company adjusted its Q1 headcount due to an error reported by one of its entities.

HCLTech was the only company this quarter to have reported a decline in employee base, which was down by around 780 employees.

Tech Mahindra reported its Q2 earnings on October 19. The company posted a net profit of Rs 1,250 crore, up by 153.1 percent on a year-on-year (YoY) basis, beating Street estimates for the second quarter ended September 30, 2024.

Sequentially, net profit grew by 46.8 percent. Consolidated revenue for the quarter stood at Rs 13,313 crore, growing by 3.5 percent YoY and 2.4 percent QoQ, beating Street estimates.

EBIT margin for the quarter stood at 9.6 percent, a 110 bps improvement from 8.5 percent last quarter.

Also read: Top 4 IT firms add 8,400 employees in Q2FY25, ending four quarters of decline