In an impressive financial turnaround, Tech Mahindra has reported a staggering 76.51% increase in profit, reaching ₹1,166.70 crore for the last quarter of FY25. This surge reflects the company’s resilience despite facing challenges in certain sectors. Additionally, the board announced a generous final dividend of ₹30 per equity share, representing an extraordinary 600% return based on the equity’s face value of ₹5.
Headcount and Attrition Insights
The company’s workforce stood at 148,731 at the end of Q4, which marks a decrease of 1,757 employees when compared to the previous quarter. However, this figure indicates a rise of 3,276 employees year-on-year. The breakdown of the headcount reveals:
- 80,609 software professionals
- 59,636 business process services (BPS) staff
- 8,486 sales and support team members
The IT sector specifically reported an attrition rate of 12% over the previous twelve months, with IT utilization maintaining a steady 86%.
Revenue Challenges in Key Sectors
Despite the profit jump, Tech Mahindra’s revenue for the fourth quarter fell short of expectations, primarily due to ongoing struggles in its communications and hi-tech verticals. This sector has been a significant contributor to the company’s income, accounting for over a third of its total revenue. During this period, the communications vertical experienced a 2.2% decline year-on-year, a trend that CEO Mohit Joshi attributes to challenging market conditions and a prolonged downturn within the industry.
Future Outlook
As Tech Mahindra navigates these turbulent waters, the leadership remains focused on revitalizing the business, particularly in the communications segment. The company’s strong profit growth, alongside strategic dividends, reflects its commitment to delivering value to stakeholders while seeking new opportunities in an evolving market landscape.
Staying updated with these developments is crucial for investors and industry stakeholders alike, as Tech Mahindra continues to adapt to external pressures and internal goals.
