Tech Mahindra, a leading IT services firm and part of the Mahindra Group, reported its Q3 FY25 financial results with a net profit of Rs 983 crore, marking a 92.6% year-on-year (YoY) increase.
However, sequentially, the net profit declined by 21.36% due to a higher base reported in the previous quarter from a one-time special income from the sale of assets.
The company’s revenue for the quarter stood at Rs 13,285 crore, a 1.4% YoY increase, but a 0.21% sequential decline.
Tech Mahindra Q3FY25: Headcount and Attrition Rate
Tech Mahindra’s headcount saw a net decline of 3,785 employees in Q3 FY25, bringing the total headcount to 150,488 compared to 154,273 in Q2 FY25.
On a year-on-year basis, the headcount increased by 4,238 from 146,250 in Q3 FY24.
The company has been actively onboarding freshers this fiscal year, with a target of hiring more than 6,000 freshers.
By Q2 FY25, Tech Mahindra had already added over 2,000 freshers, and in Q1 FY25, about 1,000 freshers were onboarded.
The attrition rate for Tech Mahindra increased to 11.2% in Q3 FY25, up 90 basis points (bps) YoY.
The last twelve-month (LTM) attrition rate also inched up to 11.2% from 10.6% in Q2 FY25.
The utilization rate stood at 85.6% in Q3 FY25, slightly down from 86.3% in Q2 FY25.
New Partnerships and Hiring Plans
Tech Mahindra announced several new partnerships in Q3 FY25, focusing on expanding its presence in key verticals and prioritized markets.
The company reported net new deal wins of $745 million, a 95% YoY increase.
These new deals are expected to contribute to the company’s revenue growth and margin expansion.
Tech Mahindra has outlined ambitious hiring plans for FY25, aiming to onboard more than 6,000 freshers.
The company’s focus on fresh talent is part of its strategy to address the rising attrition rates and to meet the growing demand for IT services.
The company’s CEO, Mohit Joshi, emphasized the importance of these hiring plans in achieving long-term goals and maintaining a competitive edge in the industry.
Mohit Joshi, said on the company’s performance, “We see an improved rate of deal wins in our key verticals and prioritized markets.”
He added, “This coupled with consistent expansion in operating margins, despite cross-currency headwinds during the quarter, reaffirms that we are on track to achieve our long-term goals.”
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