Mid-tier IT services company Mindtree reported a 27.5 per cent year-on-year(y-o-y) rise in net profit at ₹508.7 crore for the quarter ended September 30, exceeding street expectations. On a sequential basis, the profits rose 7.9 per cent from ₹471.6 crore in the last quarter.
Revenue from operations stood at ₹3,400.4 crore, a 31.5 per cent increase y-o-y. On a quarter-on-quarter(q-o-q) basis, the revenues increased by 8.9 per cent from ₹3,121.1 crore.
In dollar terms, the revenue recorded was $422.1 million, a q-o-q growth of 5.7 per cent and a 20.6 per cent growth y-o-y. The net profit recorded for the period was $63.1 million, a q-o-q growth of 4.6 per cent and 16.9 per cent growth y-o-y. The EBIT margin stood at 21 per cent for the quarter, compared with 19.2 per cent in the last quarter.
Debashis Chatterjee, Chief Executive Officer, and Managing Director, Mindtree said, “We not only delivered strong revenues sequentially in constant currency, but also maintained our EBITDA margin at a healthy 21 per cent despite wage hikes across the board, making it our seventh consecutive quarter of more than 5 per cent revenue growth in constant currency, and eighth consecutive quarter of more than 20 per cent EBITDA margin.”
Record first-half signings
The company said its first-half signings for the first time in history exceeded $1 billion with an order book of $518 million. Chatterjee attributed the growth to the company’s “ability to help clients address digital transformation’s dual objectives of revenue maximisation and cost optimisation.”
The company had 38,290 employees at the end of September quarter, the trailing 12-months attrition was at 24.1 per cent. The total active client tally stood at 276 for the quarter.
Mitul Shah, Head of Research at Reliance Securities said, “The company reported a strong performance in Q2FY23 beating our estimates across all parameters. We expect strong revenues ahead with a better margin profile backed by a healthy deal pipeline, declining attrition rate, and better pricing ahead.”