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Mindtree Q3 net profit up 34%, sees strong growth momentum

Digital continues to drive Mindtree’s business, and last year it completed the acquisition of the NxT Digital Business from Larsen and Toubro for  ₹198 crore. (Photo: Mint)Premium
Digital continues to drive Mindtree’s business, and last year it completed the acquisition of the NxT Digital Business from Larsen and Toubro for 198 crore. (Photo: Mint)

  • Mindtree's dollar revenue stood at $366.4 million, up 4.7% sequentially and 33.7% on year, on the back of deals worth a total contract value (TCV) of $358 million during the quarter – a mix of annuity and recurring deals

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BENGALURU: Mindtree Ltd’s net profit for the third quarter ended December rose 34% year-on-year to 437.5 crore, driven by growth in revenues and various operational efficiency parameters and increased utilisation.

The Bengaluru-based IT services company’s revenue for the third quarter stood at 2,750 crore, up 35.9% on year, driven by broad-based growth especially in digital transformation. Sequentially, revenues grew 6.3% indicating gradual recovery in business.

The closely-watched dollar revenue stood at $366.4 million, up 4.7% sequentially and 33.7% on year, on the back of deals worth a total contract value (TCV) of $358 million during the quarter – a mix of annuity and recurring deals.

“We are pleased to have continued our positive revenue momentum through the third quarter of FY22 on the back of robust demand, aggressive customer mining, and end-to-end digital transformation capabilities," said Debashis Chatterjee, chief executive officer and managing director, Mindtree. “Our sequential revenue growth of 5.2% in constant currency reflects the strength of our strategy, execution, partnerships, and continued investments in our business and people."

Mindtree’s EBITDA margins expanded to 21.5% from 20.5% in the preceding quarter due to operating efficiencies and currency benefits.

Digital continues to drive Mindtree’s business, and last year it completed the acquisition of the NxT Digital Business from Larsen and Toubro for 198 crore, a move that is expected to help the mid-sized IT firm capture opportunities in the internet of things (IoT) and industry 4.0 space.

The attrition rate for the December quarter rose to 21.9% from 17.7% in the preceding quarter, indicating strong demand in the industry. Mindtree added about 4,500 employees in the December quarter taking its total headcount to 31,959 employees as of 31 December.

Earnings were announced after market hours on Thursday. Shares of the company rose 2.36% to close at 4,743.80 on the BSE.

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