Comments
Tech Mahindra has changed the wage hike cycle to January-to-December as against the normal April-to-April cycle. The company, which had pushed the wage hike date to January this year, will now make it a norm.
“Going forward in subsequent years all wage hikes will happen effective from January 1. We have changed the cycle. The next hike will happen in January 2015,” Rakesh Soni, Chief Operating Officer (Enterprise Division) and Chief People’s Officer, Tech Mahindra, said.
Attrition rateTalking to analysts after announcing the fourth quarter results recently, he said the company was quite comfortable with the kind of attrition rate. “Our current annualised attrition rate is about 18.7 per cent. This is an all inclusive attrition that includes people who have spent short durations with us. The attrition rates are more or less stabilised and we expect similar trends to continue going forward,” he said.
Manoj Bhat, Deputy Chief Financial Officer, has said the decline in utilisation was largely because “we have had more trainees. Excluding trainees’ utilisation is up by a percentage point.
Turnover targetMeanwhile, the company is hinting at reaching the $5-billion turnover target in seven more quarters.
As part of the run up for the merger with Mahindra Satyam, Tech Mahindra has set an ambitious turnover of target of $5 billion by 2015, raising eyebrows from the market and analysts.
Analysts had felt that the company must go in for big ticket acquisitions to get there. It now hints that it could achieve that in the next seven quarters if there are no acquisitions.
Tech Mahindra’s Managing Director and Chief Executive Officer CP Gurnani said the company could achieve $825 million in the quarter and that it would take seven more quarters to reach $1250 million a quarter. This would give the company a run rate (rough calculation of annualised numbers based on a quarter’s performance) to get to the $5-billion figure.
“The teams are constantly evaluating and we are focusing both on organic and inorganic,” he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.