Global CEO of Mastek, Hiral Chandrana, in an interview with CNBC-TV18, said the company will bring down the attrition levels in coming quarters.

While some peer companies have successfully reduced attrition to 15-16%, Mastek continues to experience a slightly higher attrition rate at around 19%.

“We are making sure that we take care of our employees, which is why we did not defer any salary increment hikes. We will continue to bring that attrition level down in the coming quarters to make sure that there is no impact on the customers as well," Chandrana said,

As of June 30, 2023, the company's workforce numbered 5,592 individuals. Among them, 4,006 employees were situated offshore in India, and the remaining were distributed across various onsite locations. To provide a point of comparison, the employee count at the conclusion of March 31, 2023, was 5,622. Attrition was at 20.4% in the first quarter of FY24, showing a slight improvement from the 21% recorded in the fourth quarter of FY23.

Mastek reported a 20% year-on-year increase in its 12-month order backlog, indicating a promising outlook for the next year. Despite this positive backlog growth, the company's deal pipeline remains robust.

Chandrana said, “The pipeline still continues to be there, in fact, demand has improved in terms of H2. We are seeing a good near-term outlook in terms of demand as well as deal pipeline."

As of June 30, 2023, the company's 12-month order backlog stood at ₹1,763.9 crore, marking a 16.9% growth in rupee terms and a 9.7% growth in constant currency terms compared to the first quarter of FY23, which reported ₹1,509.3 crore.

Also Read | Mastek poised for exponential growth in FY24, surpassing industry's high-single digit expansion

The company released its second-quarter earnings on October 19, revealing a significant increase in constant currency revenue compared to both the previous quarter and the same period last year. However, this growth was accompanied by a margin decline, attributed to wage hikes.

The shares have remained flat over the past month.

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(Edited by : Shweta Mungre)

First Published:Oct 20, 2023 4:48 PM IST