Home / Companies / Company Results /  Mindtree reports 27.5% jump in net profit for Sep qtr

NEW DELHI : Mid-cap IT services company Mindtree reported 27.5% rise in net profit for the September quarter, despite other income declining 35% to 508.7 crore from 398.9 crore in the year-ago quarter.

The company has registered 44% growth in its order book on a total contract value (TCV) basis to $518 million during the three-month period, taking its deal value for H1FY23 to over $1 billion for the first time.

Dollar revenue grew 20.6% to $422.1 million in Q2 versus $350.1 million in the year-ago. Rupee revenue was up 31.5% to 3,400.4 crore from 2,586.2 crore in the year earlier.

Note, Mindtree reported 90 basis point rise in operational margins to 19.1%, despite the street turning cautious on IT services firms amid fears of a looming global recession. Owned by L&T, the company’s earnings before interest and taxes (EBIT) rose by 27% from the year-ago to 469.7 crore.

The Mindtree stock ended the day at 3,323.65 apiece, down 0.67% on the BSE ahead of the quarterly review announcement. The stock is down 27.7% since January.

Analysts hailed Mindtree’s Q2FY23 performance, saying the company exceeded market expectations.

“The strong performance clearly saw its order book cross $1 billion for the first half of FY23, which is a clear sign of strong performance catering to smaller companies across various sectors. With 18 new $1-million-plus clients, Mindtree looks poised for sharp growth in the coming quarters," said Omkar Tanksale, senior research analyst at Axis Securities.

Debashis Chatterjee, managing director and chief executive officer, Mindtree, said: “We not only delivered strong sequential revenue growth of 7.2% in constant currency, but also maintained margin at a healthy rate despite wage hikes across the board, making it our seventh consecutive quarter of over 5% revenue growth in constant currency and eighth consecutive quarter of more than 20% EBITDA margin." Albeit a sequential moderation of 40 basis points, Mindtree’s attrition rate continues to be 24.1%. The headcount of the company stood at 38,290 as of 30 September.

The North American market continued to do well with over 78% contribution to total revenue of Mindtree.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout