IT services firm Mindtree Q1 net profit up by 37%; says confident of growth momentum in H1

Midcap IT services firm Mindtree says it is confident of continuing its first quarter growth momentum, and is monitoring macroeconomic headwinds closely.

Published: 14th July 2022 07:47 AM  |   Last Updated: 14th July 2022 07:47 AM   |  A+A-

Image for representational purpose only.

Image for representational purpose only.

By Express News Service

BENGALURU:  Midcap IT services firm Mindtree says it is confident of continuing its first quarter growth momentum and is monitoring macroeconomic headwinds closely. The company on Wednesday posted a 37% increase in its consolidated net profit at Rs 471.6 crore for the quarter ended 30 June 2022, compared to Rs 343.4 crore in the same quarter last year.

Beating street estimates, the company reported Rs 3,121.1 crore revenue, a 36% increase as compared to Rs 2,291.7 crore in the year-ago period. The company’s EBITDA margin stood at 21.1%.  It also saw the highest-ever order book of $570 million. “We are confident of continuing growth momentum. The first half of the year looks pretty good,” said Debashis Chatterjee, chief executive officer and managing director, of Mindtree.

He added that there has been no significant change in client behaviour. The company is closely watching macro-economic development and is also continuously cautiously optimistic. In May this year, L&T announced the merger between its IT services business units- L&T Infotech (LTI) and Mindtree to form ‘LTIMindtree’. Chatterjee will lead the entity, and the amalgamation is said to be completed by FY23.
For the combined entity, BFSI will be the largest vertical.

Mindtree CEO said clients are positive about the merger, and together they have also won a contract. Mindtree is also in the process of setting up offices in Coimbatore and Noida, and a satellite office in Bengaluru. In the June quarter, the Bengaluru-based company added 4,700 employees and the total headcount now stands at 37,455.

The attrition rate in the first quarter increased to 24.5%, and Chatterjee said that it will take a few more quarters for the attrition to stabilise. Meanwhile, the company has hired 1,500 freshers in the June quarter and is planning to hire similar numbers in the following quarters.

Mindtree merger to be completed by FY23
In May this year, L&T announced the merger between its IT services business units- L&T Infotech (LTI) and Mindtree to form ‘LTIMindtree’. Chatterjee will lead the entity, and the amalgamation is said to be completed by FY23



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