Tech Mahindra’s employee count slips by over 4,100 in June quarter, attrition eases for the fifth quarter in a row

Following the results, CP Gurnani, MD and CEO of Tech Mahindra, said, "Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long-term value for our customers and shareholders."

His remarks come as the company’s margin came in 440 basis points lower than estimated by a CNBC-TV18 poll of analysts. It was down at 6.8 percent from 11.2 percent in the previous quarter.

Brokerage firm Nomura has pointed out salary hikes, apart from provisioning and revenue decline, as one of the factors leading to a margin miss. This comes as most tech firms announce their salary hikes in the June-end quarter. However, it is not clear what was the average increment given to employees.

As per the company’s annual report for the previous fiscal year i.e. 2022-23, employees were given an increase of 6 percent in their pay package (including those overseas). In the same time period, the remuneration of managerial personnel had decreased by 41 percent. However, if the stock options exercised part is removed, then the managerial pay did not decrease.