Tech Mahindra To Hire 1,500 Freshers In Q1 FY25, Targets 6,000 By Next Fiscal (image source: Getty Images)
Tech Mahindra Hiring: At a time when the tech companies around the world are announcing the back to back layoffs, Tech Mahindra one of India’s leading IT services firms, stands has a hope for fresh college grads as the company plans to recruit 1,500 freshers every quarter starting from the first quarter of the fiscal year 2024-25 a total of 6,000 people in the next fiscal year.
Mohit Joshi, Managing Director & CEO of Tech Mahindra, affirmed the company’s commitment to hiring fresh graduates at a steady pace of 1,500 every quarter.
Despite a decline in total headcount by 795 from the previous quarter to 145,455 and a reduction by 6,945 from the previous year, Joshi attributes this to the business volume. He remains optimistic about future improvements.
Joshi anticipates a turnaround in the ongoing quarter ending June, expressing optimism for improvement in client spending in FY2025.
FY24 posed challenges for the IT services sector, but Joshi remains positive about Tech Mahindra’s revenue performance in the coming fiscal year.
Tech Mahindra Yearly Financial Performance
Tech Mahindra reported a year-on-year decline of 40.9% in net profit to Rs 661 crore, primarily attributed to a slowdown in its telecom, communications, media, and entertainment business, its largest vertical.
While revenue from operations fell 6.2 per cent year-on-year to Rs 12,871.30 crore, the EBIT margin improved to 7.4 per cent from the previous quarter’s 5.4 per cent.
Full-Year Performance
Full-year profit dropped by 51.2 per cent year-on-year to Rs 2,357.8 crore, while revenue declined by 2.4 per cent year-on-year to Rs 51,996 crore.
Dividend Announcement
The company’s board recommended a final dividend of Rs 28 per equity share for the financial year ended March 31, 2024.
Ram Ramachandran was appointed head of the strategic business unit for India Middle East Africa (MEA).
Three-Year Turnaround Roadmap
Management unveiled a comprehensive three-year turnaround roadmap, outlining ambitious goals for FY27. The objectives include achieving above-peer-average growth, maintaining a 15 per cent EBIT margin, and achieving an ROCE of over 30 per cent.
Strategy Details
The strategy entails detailed plans for identified investment areas, organizational structure optimization, cost optimization opportunities, and a realistic timeline for implementation. Growth will be driven by top accounts, large multi-tower deals, and a focus on high-growth service areas.
Margin Expansion and Cost Savings
Margin expansion will be facilitated by targeted average cost savings of USD 250 million annually. Given the company’s current EBIT margin of approximately 6 per cent, these targets seem feasible and are essential for achieving the 15 per cent target EBIT margin.
Defined Deliverables and Organizational Structure
The strategy comes with well-defined deliverables and measurable metrics, with the organizational structure and key personnel already in place. While execution remains critical, the plan appears robust on paper.
Extended Timeline and Investor Confidence
The three-year plan reflects the board’s confidence in the management team, providing a longer runway for success. Investors should also consider this extended timeline, which enhances the probability of success.
