IT services major, Tech Mahindra announced its first quarter financial results, Q1FY23 ended on June 30, 2022.
The consolidated net profit fell 16.4% year-on-year to Rs 1,132 crore in the fiscal first quarter, deeper than what analysts had estimated on higher employee and subcontracting costs. The Cash and Cash Equivalent at USD 1,114 mn as of June 30, 2022
The company added 6,862 new employees in Q1 with a total headcount that stood at 158,035. Attrition dropped to 22% compared to 24% in the previous quarter as the company started seeing synergies from its small-town campus strategy.
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra said, “We are starting this fiscal with a renewed commitment towards delivering consistent organic growth.”
“We remain resilient and watchful given the dynamic global macro-economic environment and will continue to invest in new and emerging technologies to deliver differentiated offerings”, CP Gurnani said.
CP Gurnani further added, “Our winning strategy rests on the pillars – ‘Purpose, People and Performance’ which is aiding us to responsibly capitalize on the strong demand environment in the market.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “Delivery transformation, cost optimization, and cash conversion will be key focus areas, as we continue to offset the strong supply side headwinds in the market. We aim to expand our profitability through operational excellence and improved operating metrics over the course of FY’23..”
“When I look at the pipeline, it is very evident that there is still a lot of demand. My pipeline has never been better,” said CP Gurnani, managing director and chief executive of NSE -1.71 %.
“Many of our customers are spending money on technology despite existing headwinds like inflation, economic slowdown, and supply-chain challenges,” he said.
He further added, “We are confident that we will have the opportunity to work on profitability levers over the next few quarters.”
Infosys has announced that it has reached a total headcount of 3,35,186 employees in Q1FY23, with the net addition of 21,171 people in the first quarter ending on June 30. The company’s attrition rate has increased to 28.4% in Q1FY23 expanding by 70 basis points from 27.7% in Q4FY22.
Wipro added 15,000 employees in the first quarter of this fiscal with a total headcount of 258,574 employees on June 30, 2022. The company has reported an attrition rate of 23.3 percent, slightly lower than the previous quarter’s 23.8 percent, but significantly higher than 15.5 percent during the corresponding quarter last year.
HCL added 2,089 employees and its attrition rate rose to 23.8 percent as compared to 21.9 percent in the previous quarter.
TCS added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce. Its attrition rate climbed up from 17.4 percent in the last quarter of the previous fiscal to 19.7 percent in the reporting quarter.
