scorecardresearch

Mindtree posts 7.9% rise in net profit to Rs 509 cr

The company’s number of active clients stood at 276 as of September 30. Its clients with spend of more than $1 million rose by 15 to 160 and that of $5 million rose by three to 61.

Mindtree posts 7.9% rise in net profit to Rs 509 cr
The midcap IT firm had posted a net profit of Rs 471.6 crore in the June quarter. Mindtree’s net profit on a year-on-year basis rose 27.5% from Rs 398.9 crore posted during the same quarter of the last financial year.

Mindtree, a subsidiary of Larsen & Toubro (L&T), on Thursday posted a sequential 7.9% rise in consolidated net profit of Rs 508.7 crore for the quarter ended September 30, led mostly by growth across all its industry verticals.

The midcap IT firm had posted a net profit of Rs 471.6 crore in the June quarter. Mindtree’s net profit on a year-on-year basis rose 27.5% from Rs 398.9 crore posted during the same quarter of the last financial year.

The company’s revenue rose 8.9% to Rs 3,400.4 crore on a sequential basis from Rs 3,121.1 crore posted in the June quarter and 31.5% from Rs 2,586.2 crore reported in the same quarter of last year.

Also Read: Infosys has let go of employees working for two companies: Parekh

“We not only delivered strong revenues of $422.1 million, up 7.2% sequentially in constant currency, but also maintained our Ebitda margin at a healthy 21% despite wage hikes across the board. We have now delivered seven consecutive quarters of more than 5% growth in constant currency,” Mindtree CEO and managing director Debashis Chatterjee said. “Our first-half signings crossed $1 billion for the first time in our history,” he added.

The company’s number of active clients stood at 276 as of September 30. Its clients with spend of more than $1 million rose by 15 to 160 and that of $5 million rose by three to 61.

The Bengaluru-based company’s attrition (on a last 12-month trailing basis) fell marginally to 24.1% from June quarter, while it rose from 17.7% recorded during the same year-ago quarter.

“During the quarter, we on-boarded more than 3,100 professionals taking our global headcount to about 38,000. While we continue to be consistent in our pace of campus and lateral hirings, we are now looking at hiring from a perspective of capacity and economy of scale resulting from the merger of Mindtree and Larsen & Toubro Infotech (LTI),” Chatterjee said, adding that the firm is seeing attrition “showing early signs of stabilising”.

On the Mindtree-LTI merger, the company expects to get regulatory approvals by the end of this calendar year.

The company’s deal pipeline continues to be robust, barring a few instances, where some of the clients have deferred some programmes.

“The only change we see is there is a little extra time or little more time clients are taking in terms of closing specific opportunities. Overall, there is a bit of caution right now and we are following the situation very closely,” he said.

On moonlighting, Mindtree mirrored the sentiments of major IT firms. “Our contracts do not allow dual employment,” Mindtree CFO Vinit Teredesai said.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 14-10-2022 at 04:15 IST