BENGALURU: Mindtree has been one of the best performing mid-cap IT service firms during the pandemic quarters and it met the street expectations handsomely for the June quarter too with net profit rising by 8.2% sequentially and 61.2% Y-o-Y to Rs 343 crore. The revenues recorded an 8.6% jump for Q1 at Rs 2,291.7 crore, up by 61.2% YoY, thanks to the company’s highest-ever order book at $504 million.
This despite the attrition rate climbing to a 12-month high at 13.7%, signalling a continuing concern of employee exits from leading IT service firms. Mindtree’s headcount stood at 27,256 employees. The Bengaluru-headquartered tech firm had also hiked the wages of its employees which resulted in the contraction of the EBITDA margin by 50 basis points at 17.4% for the June quarter.
“We are pleased to report a strong start to FY22 with broad-based first-quarter growth across all service lines and industry segments. For the quarter, revenues were $310.5 million, up 7.7% sequentially, and EBITDA was 20.3%, demonstrating the resilience of our business in a challenging environment. The highest ever order book of $504 million affirms that the focused execution of strategy and client-centricity in re-imagining business models for the digital era is helping us drive profitable and sustainable growth,” said Debashis Chatterjee, CEO and MD.
Reliance securities said in a statement that a good order book of$ 504 million projects strong double-digit revenue growth for the IT service firm for FY22. “Though revenue contribution from top client declined marginally to 27.4%, which is still high compared to mid-cap peer group,” it added. Jyoti Roy — DVP— Equity Strategist, Angel Broking, said: “Post the better-than-expected set of numbers for Q3FY21 we maintain our ‘buy’ rating on the stock with a target price of Rs 2850.”