BENGALURU: Mid-size IT services firm Mindtree on Monday, beating Street estimates, reported a 49% increase in its fourth quarter net profit at Rs 473 crore for the quarter ended March 31, 2022. The company had reported Rs 317 crore profit in the same quarter last year.
The Bengaluru-based company’s revenues for the fourth quarter stood at Rs 2,897.4 crore, up 37% Y-o-Y, compared to Rs 2,109.3 crore in the year-ago period. For the full year period FY22, the company’s revenues stood at Rs 10,525.3 crore, an increase of 32% compared to Rs 7,967.8 crore in FY21. For Mindtree, BFSI and travel verticals were major growth drivers.
The company has delivered EBITDA margin of 20.9% and PAT margin of 15.7% in FY22, which is said to be the company’s highest in a decade. The company’s board has recommended a final dividend of Rs 27 per equity share for the financial year ended March 31, 2022.
“Our industry-leading growth through a year of rapid business and technology shifts demonstrates the relevance of our value proposition in reimagining businesses and driving digital transformation at scale,” said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree.
The company has 276 active clients as of March 31, 2022, and its $20 million + clients increased by five in the fourth quarter. Its attrition stood at 23.8% and the IT firm hopes that this will reduce in the coming quarters.
It has added 11,200 people in FY22. Of its total revenues, North America continues to be the largest contributor revenue with 73.6% share, followed by Continental Europe at 9%, which grew at 69.2% Y-o-Y. Mindtree’s total contract value (TCV) stood at $390 million in Q4FY22. Shares of the company ended at Rs 3,956.15, down 3.44% on Monday on the BSE.
Claims merger with L&T Infotech speculative
Mindtree on Monday after its Q4 earnings call clarified that the reports of a merger between the company and L&T Infotech are “speculative”. “We would like to state that there is no information available with the company as of today, which is required to be reported under extant SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and which may have a bearing on the stock price of the company,” Mindtree said in a regulatory filing. Earlier, there were reports that Mindtree and L&T Infotech might consider share swap ratios for the merger.