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Mindtree Q1 results: Net profit rises 8% QoQ to Rs 343 cr, beats estimates; firm sees record deal wins

MUMBAI: Midcap IT services company Mindtree reported a 8.2 per cent sequential rise in consolidated net profit to Rs 343.4 crore for the quarter ended June, which was above analysts’ estimates.

The company’s consolidated revenues in the quarter grew 8.6 per cent sequentially to Rs 2,291.7 crore for the reported quarter, slightly ahead of analysts’ expectations.

The company reported deal wins of $504 million in the quarter ended June, the highest on record and up 34 per cent on quarter.

During the quarter, the company added one client in the $20 million plus category and five clients in the $10 million plus category, indicating robust demand for its services.

“We are pleased to report a strong start to FY22 with broad-based first-quarter growth across all service lines and industry segments,” said Debashis Chatterjee, chief executive officer and managing Director at Mindtree.

The company’s topline rose 7.7 per cent on-quarter in dollar terms, while constant currency growth for the June quarter was at 7.6 per cent, sequentially.

Crucially, the operating performance of the company likely suffered due to the ongoing war for talent in the Indian IT sector. While consolidated earnings before interest, tax, depreciation and amortization were largely flat sequentially, the company’s margins shrank 160 basis points to 20.3 per cent.

Attrition rate during the quarter jumped to 13.7 per cent from 12.1 per cent in the previous quarter even as the company net added 3,442 new employees in the June quarter.

Shares of Mindtree ended 0.3 per cent higher at Rs 2,504.95 on the National Stock Exchange.

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