More employees are leaving Infosys, Tech Mahindra than TCS and Wipro
- The technology company’s consolidated profit after tax grew just 2.2% sequentially in October to December.
- Shares of the company slipped nearly 4% on Wednesday as investors were disappointed with the marginal growth in profits.
- Adding to it, more employees left Tech Mahindra than at TCS and Wipro in an industry that is struggling with high attrition rate.
AdvertisementShares of information technology (IT) firm Tech Mahindra slumped nearly 4% on February 2 as investors sold stocks after the company delivered lower than expected profits.
The company's net profit increased 2.2% sequentially to ₹1,369 crore in October to December as compared to expectation of ₹1,454 crore consensus estimate of analysts tracked by Bloomberg.
While revenue is in line with expectations, weaker than expected margins and slower hiring is a concern, says analysts reportedly at UBS investment banking firm. It also maintained a ‘sell’ rating on the stock with a target price of ₹1,260 per share.
Adding to it, more employees are leaving Tech Mahindra than TCS and Wipro in an industry that is struggling with a high attrition rate. However, Tech Mahindra is not the only firm struggling with high attrition, every other IT firm is getting more resignations than ever before. Infosys has the highest attrition rate in the industry.
“We continue to strengthen our presence, deliver broad-based profitable growth and value for our customers, backed by future-ready talent and niche digital capabilities,” said CP Gurnani, managing director and chief executive officer at Tech Mahindra.
|IT companies||Attrition rate in Oct-Dec|
Tech Mahindra’s total headcount has increased by 19% on a yearly basis to 1.45 lakh as on December quarter.
|Tech Mahindra Q3 results||% growth QoQ||% growth YoY|
|Revenue growth in dollar terms||4.1%||17.2%|
|Profit after tax||2.2%||4.5%|
SEE ALSO: India’s finance minister was asked these 10 questions and these were her answers
India budgets for a trickle down — as slow as that might be
Popular on BI
- PM Modi shares image of tailor on the street using Paytm, calls it a common sight across India
- Adani Enterprises’ ₹20,000 crore FPO fully subscribed on the last day
- I was working toward a promotion at Amazon when my manager started emailing me about needing coaching. Now I'm worried about losing my job.
- All major automakers except Bajaj Auto expected to register growth in January say brokerages
- India's core sector output rises by 7.4 per cent in December
- Indian start-ups are looking at reverse flipping says Economic Survey
- This cheesecake startup refused to give up a slice of its company for a lower valuation on Shark Tank India
- SC suggest Nirav Modi's bro-in-law to give letter of authority to CBI to access offshore bank accounts